The City of Abernathy’s (City) outstanding debt is comprised entirely of Combination Tax & Revenue Certificates of Obligation (COs).
Total Outstanding Debt Obligations
As of October 1, 2021, the total amount of municipal debt obligation secured solely by property taxes for the City of Abernathy is $0. The total amount of outstanding principal balance on debt obligations considered self-supporting is $942,000.00. Self-supporting debt is currently secured by water and sewer revenue payments. In the event such amounts are insufficient to pay debt service, the City will be required to assess an ad valorem tax to pay such obligations.
Debt-Related Links
Direct Debt
As of October 1, 2021, the Direct Debt for the City is as follows:
- Comb Tax & Rev C/O Ser 2015
- Sale Date: 2015
- Final Maturity: 2030
- Original Borrowing: $1,445,000
- Outstanding 10/1/2021: $852,000
- Per Capita: $283.53
- Total Direct Debt
- Original Borrowing: $1,445,000
- Outstanding 10/1/2021: $852,000
- Per Capita: $283.53
Note: Per Capita figures are based on the City’s 2020 Census Population of 3,005.
Currently, the City of Abernathy has not been issued a credit rating by any recognized credit rating organization on any city debt obligations.
Expanded Overview of all Debt (10/1/2021)
| Amount | Per Capita | |
|---|---|---|
| Amount of All Authorized Debt Obligations | $852,000.00 | $283.53 |
| Total All Authorized Debt (Principal Only) | $852,000.00 | $283.53 |
| Total Required to Pay All Debt On Time and In Full | $959,684.00 | $319.36 |
| Total Debt Secured Solely by Property Taxes | $0.00 | $0.00 |
| Total Tax/Revenue Supported Debt | $852,000.00 | $283.53 |
| Total Lease-Purchase or Lease-Revenue Obligations | $0.00 | $0.00 |
Bond Elections
20-Year Bond Election Information FY 1996-97 thru FY 2020-21
Date of Election
None
Purpose
N/A
Amount
$0.00
Lease-Purchase or Lease-Revenue Obligations
As of 10/1/2021 the City of Abernathy has no Lease-Purchase or Lease-Revenue obligations.
Certificates of Obligation
Certificates of Obligation are typically issued without voter approval (unless a referendum is petitioned) and backed by tax revenue, fee revenues, or a combination of the two. The City’s COs are secured by a combination of property taxes and a limited pledge of the City’s combined water and wastewater system revenue.
Individual Debt Obligations Listed Below
2015 Certificate of Obligation (Revenue Secured) for Water/Sewer System Improvements – Issued 12/8/2014
Issued Amount: $1,445,000.00
Spent Amount (as of 10/1/2021): $1,256,132.40
Unspent Amount (as of 10/1/2021): $188,867.60
| Date | Principal Pmt | Interest Pmt | FY Total Pmts | Principal Balance | P&I Due (On-Time In-Full) |
|---|---|---|---|---|---|
| 1/8/15 | — | — | — | 1,445,000 | 1,801,856.90 |
| 8/15/15 | — | 24,911.00 | 24,911.00 | 1,445,000 | 1,776,945.90 |
| 2/15/16 | 78,000 | 20,663.50 | — | 1,367,000 | 1,678,282.40 |
| 8/15/16 | — | 19,548.10 | 118,211.60 | 1,367,000 | 1,658,734.30 |
| 2/15/17 | 81,000 | 19,548.10 | — | 1,286,000 | 1,558,186.20 |
| 8/15/17 | — | 18,389.80 | 118,937.90 | 1,286,000 | 1,539,796.40 |
| 2/15/18 | 83,000 | 18,389.80 | — | 1,203,000 | 1,438,406.60 |
| 8/15/18 | — | 17,202.90 | 118,592.70 | 1,203,000 | 1,421,203.70 |
| 2/15/19 | 85,000 | 17,202.90 | — | 1,118,000 | 1,319,000.80 |
| 8/15/19 | — | 15,987.40 | 118,190.30 | 1,118,000 | 1,303,013.40 |
| 2/15/20 | 88,000 | 15,987.40 | — | 1,030,000 | 1,199,026.00 |
| 8/15/20 | — | 14,729.00 | 118,716.40 | 1,030,000 | 1,184,297.00 |
| 2/15/21 | 90,000 | 14,729.00 | — | 940,000 | 1,079,568.00 |
| 8/15/21 | — | 13,442.00 | 118,171.00 | 940,000 | 1,066,126.00 |
| 2/15/22 | 93,000 | 13,442.00 | — | 842,000 | 959,684.00 |
| 8/15/22 | — | 12,112.00 | 118,554.10 | 842,000 | 947,571.90 |
| 2/15/23 | 96,000 | 12,112.10 | — | 751,000 | 839,459.80 |
| 8/15/23 | — | 10,739.30 | 118,851.40 | 751,000 | 828,720.50 |
| 2/15/24 | 98,000 | 10,739.30 | — | 653,000 | 719,981.20 |
| 8/15/24 | — | 9,337.90 | 118,077.20 | 653,000 | 710,643.30 |
| 2/15/25 | 101,000 | 9,337.90 | — | 552,000 | 600,305.40 |
| 8/15/25 | — | 7,893.60 | 118,231.50 | 552,000 | 592,411.80 |
| 2/15/26 | 104,000 | 7,893.60 | — | 448,000 | 480,518.20 |
| 8/15/26 | — | 6,406.40 | 118,300.00 | 448,000 | 474,111.80 |
| 2/15/27 | 107,000 | 6,406.40 | — | 341,000 | 360,705.40 |
| 8/15/27 | — | 4,876.30 | 118,282.70 | 341,000 | 355,829.10 |
| 2/15/28 | 110,000 | 4,876.30 | — | 231,000 | 240,952.80 |
| 8/15/28 | — | 3,303.30 | 118,179.60 | 231,000 | 237,649.50 |
| 2/15/29 | 114,000 | 3,303.30 | — | 117,000 | 120,346.20 |
| 8/15/29 | — | 1,673.10 | 118,976.40 | 117,000 | 118,673.10 |
| 2/15/30 | 117,000 | 1,673.10 | 120,346.20 | 0.00 | 0.00 |
| Total | 1,445,000 | 356,856.90 | 1,801,859.90 | — | — |
Historical Debt Authorization and Approval
As mentioned above, the City’s debt is comprised of certificates of obligation which do not require a bond election. The outstanding debt was authorized by the City Council as follows:
On December 8, 2014, the City Council approved an ordinance authorizing the issuance of “City of Abernathy, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2015” for $1,445,000; providing for the payment of said certificates of obligation secured by water, sewer revenue payments. In the event such amounts are insufficient to pay debt service, the City will be required to assess an ad valorem tax to pay such obligations. The purpose of this issuance being to finance the constructing and improving, water and wastewater systems.
Abernathy City Council Ordinance Authorization
Bond Compliance Requirements
The City of Abernathy is required to maintian certain accounts or funds to to receive the proceeds from the sale of the bonds and to account for the revenues which are pledged for payment of the bonds. The assets can be used only in accordance with the terms of the bond ordinance and for the specific purpose(s) designated therein.
The City is generally required to make an annual transfer to debt service funds equal to the next interest and principal payment. The bonds may be redeemed prior to their maturities in accordance with the bond ordinances in whole or in part in principal amounts of $5,000 or any integral multiple thereof. To date, the City of Abernathy has complied with the requirements of all bond ordinances and related bond restrictions.
Payment of Debt
All current debt is supported by water revenue. On November 10, 2014, the Abernathy City Council voted for the adoption of Ordinance 562 whereby the water rates were increased to secure debt payments. This includes payment of principal of, interest on and other costs relating to the “City of Abernathy, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2015” – These funds are held in and payments are made from the City’s Intrest & Sinking Fund account.
