Page 470 - FY 2021-22 Proposed Budget

City Indebtedness

Exhibit 9 provides the outstanding balances of City debts along with 2020-21
and 2021-22 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, 6/30/2021 Service Requirement
Bonds Principal Interest Total 2020-21 2021-22
MICLA (2) $ 1,394,165 $ 421,952 $ 1,816,117 $ 183,948 $ 199,085
General Obligation 627,460 144,547 772,007 128,456 119,325
Site-Specific Tax Revenue 4,206 648 4,854 868 833
Solid Waste Resources Revenue 164,495 36,569 201,064 28,696 23,953
Wastewater System 2,529,940 1,482,823 4,012,763 220,319 224,950
Subtotal 4,720,266 2,086,539 6,806,805 562,287 568,146
Tax and Revenue Anticipation Notes -- -- -- 66,734 -
Total 4,720,266 2,086,539 6,806,805 629,021 568,146

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 2021, the balance of the MICLA and Wastewater System commercial paper notes
was $275 million and $105 million, respectively.
(2) Includes debt service requirement supported by assessment on real property approved by the electorate of $225,500
in 2021-22.
(3) A total of $1,761,305,000 in TRAN were issued on July 07, 2020, with final maturity of June 24, 2021. The amount of
interest to be paid in 2021-22 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.
Source: Official Statements

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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