Debt Information

Town of Little Elm (Town) outstanding debt is comprised of direct obligations and custodial debt associated with Public Improvement Districts. Direct obligations consist of debt issued by the Town and secured by levied taxes or Town revenues. Public Improvement District (PID) Debt is debt issued that the Town is not obligated to pay and assessed through the various PIDs levies.


General Obligation Bonds 


General Obligation Bonds provide funds for acquiring and constructing major capital equipment, facilities, and infrastructure. General Obligation Bonds are direct obligations issued on a pledge of the general taxing power to pay the debt obligations of the Town. General Obligation Bonds require the Town to compute, at the time other taxes are levied, the rate of tax required to provide (in each year bonds are outstanding) a fund to pay interest and principal at maturity. The Town is in compliance with this requirement.


General Obligation Bonds have been rated AA+ by Standard & Poor’s and Aa2 by Moody’s.


Certificate of Obligations


Certificate of Obligations (CO) are used to finance the acquisition and construction of major capital equipment, facilities, and infrastructure. COs are similar to General Obligations Bonds, except they do not require voter approval before they are issued. This provides flexibility to finance projects quickly. 


The COs are also guaranteed by the Town’s taxation power and are counted in the calculation of the tax rate that is needed to support government debt payments.  


The Town Finance Department has issued some Certificate of Obligations to construct the Town’s water and sewer system. While this financing conduit is a Certificate of Obligations, the repayment is funded 100% from fees charged to water and sewer system customers.  

Certificates of Obligations have been rated AA+ by Standard & Poor’s and Aa2 by Moody’s.

 

TOWN OF LITTLE ELM 
TOTAL OUTSTANDING DEBT OBLIGATIONS


As of September 30, 2022, the Direct Obligated Debt for the Town was as follows:

Note:  Per Capita figures are based on the Town’s 2022 estimated population of 51,635


 Debt Per Capita

Town of Little Elm - Outstanding Direct Debt: Fiscal Year 2022Per Capita Outstanding Debit
Governmental Activities

                                  General Obligation Bonds        $16,170,109   $313.16
                                  Certificate of Obligations        $59,735,500$1,156.88
                                Total Tax-Supported Debt Obligations        $75,905,609$1,470.04
Business-Type Activities

                                  General Obligation Bonds        $14,479,458   $280.42
                                  Certification of Obligations        $27,008,050   $523.06
                                Total Tax-Supported Debt Obligations        $41,487,508   $803.48



TOTAL LITTLE ELM OUTSTANDING DIRECT DEBT       $117,393,117$2,273.52


Total Debt History FY 2018-2022

                                                                                       tax supported debt 2018 22                                                                                                                                                                                                 


Total Debt History FY 2018-2022 Per Capita

tax debt per cap


                                                                                                                                                           

Debt Detail Information

Outstanding Debt Obligation by Issue as of 09/30/22: Issue-by-issue listing including the principal amount of each outstanding debt obligation. 


Outstanding Direct Debt by Fiscal Year for the Last 5-Years: Total outstanding tax-supported and revenue-supported debt. 

                                                                                                                                                           

HB 1378: Debt Obligation Reporting under Local Government Code Section 140.008

The 84th Legislature passed HB 1378 to increase the transparency of local government debt. Under Local Government Code § 140.008, political subdivisions, including counties, cities, school districts, junior college districts, special purpose districts, and other subdivisions of state government, must annually compile their debt obligation data from the preceding fiscal year.

Town of Little Elm's 2021 Direct Debt and Debt Service Requirements.