Page 478 - 2020-21 Budget Summary

Revenue Forecast Report
Discussion

City Indebtedness

Exhibit 9 provides the outstanding balances of City debts along with 2019-20
and 2020-21 estimated debt service requirements based on the amount of
current outstanding debt.

EXHIBIT 9

OUTSTANDING DEBT AND DEBT SERVICE REQUIREMENTS (1)
(amounts expressed in thousands)

Debt
Outstanding Balance, 6/30/2020 Service Requirement
Bonds Principal Interest Total 2019-20 2020-21
MICLA (2) $ 1,375,984 $ 474,230 $ 1,850,214 $ 210,942 $ 208,954

General Obligation 729,520 170,943 900,463 136,286 128,456
Judgment Obligation - - - 6,495 -
Site-Specific Tax Revenue 4,806 918 5,724 800 868

Solid Waste Resources Revenue 185,660 44,101 229,761 47,503 28,696
Wastewater System 2,624,685 1,606,825 4,231,510 223,925 220,319
Subtotal 4,920,655 2,297,017 7,217,672 587,293
625,951
Tax and Revenue Anticipation
Notes (3) -- -- -- 79,533 --
Total $ 4,920,655 $ 2,297,017 $ 7,217,672 $ 705,484 $ 587,293

Notes:
(1) Long-term debt does not include short-term commercial paper notes. However, the goal is to replace commercial
paper with long term debt. As of January 2020, the balance of commercial paper notes was $242 million.
(2) Includes debt service requirements supported by voter-approved assessments on real property of $523,500 in
2020-21.
(3) A total of $1,655,030,000 in TRAN were issued on July 09, 2019, with final maturity of June 25, 2020. The
amount of interest to be paid in 2020-21 will depend upon the size of the TRAN and interest rates at the time of sale.
The size of the TRAN will depend upon the amount of cash needed for cash flow and budgetary decisions on advance
funding of City pensions and retirement contributions.

The City strategically structures its various debt service schedules with the
goal of stability. This means that, when one issuance is paid off and retired,
payments are accelerated for other issuances. By scheduling the payments
this way the City avoids large swings in debt service which can have negative
budgetary impacts.

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