LV Debt Liabilities
A blog by any other name is still a blog.
 
Find your Elected Officials
State/Federal OR Local

 

Home  |  Contact Gorena  .


Home
Why this Blog?
Get Notified Form
Policies
Lewisville Council & Links
LV CDBG program
LV Sewer Cleanout Program
LV Press Releases
LV Property Abatements
LV Debt Liabilities
LV Garage Ordinance
LV Sex Offender Ord.
LV Smoking Ban
LV Rental Inspection
LV Translating
LV Design Plans
LV Purple Martin Logo
THE ARCHIVES


Lewisville's New TIPS Line
972-219-8477 (TIPS)


See What Happened?
www.crimereports.com


Who's in the Lewisville Jail?


Get Lewisville Police Alerts


Quotable Quotes

"Tis our true policy to steer clear of permanent alliances with any portion of the foreign world.."
 - George Washington (1796)


"Commerce with all nations, alliance with none, should be our motto."
 - Thomas Jefferson (1799)


"The ongoing migration of persons to the United States in violation of our laws is a serious national problem detrimental to the interests of the United States." - Ronald Reagan, 1981


"Honor never grows old, and honor rejoices the heart of age. It does so because honor is, finally, about defending those noble and worthy things that deserve defending, even if it comes at a high cost. In our time, that may mean social disapproval, public scorn, hardship, persecution, or as always, even death itself. The question remains: What is worth defending? What is worth dying for? What is worth living for?" - William J. Bennett in a lecture to the U. S. Naval Academy, Nov 24, 1997


Children's Book
STAR: A journey through the solar system



Free Events in
Lewisville.
Please visit
www.
SoundsOfLewisville
.com



On this page:

Debt Concerns:  One of my concerns is how money is spent.  I think that there are two distinct schools of thought on this:

  • Debt is OK if you can pay for it.
  • Pay off the debt and start paying as you go.

OK, OK, OK...  Most people are somewhere in the middle of these two schools.  And if you have not guessed it, I believe that the latter can be achieved with some discipline.  The problem is that many believe in the I-Love-Debt Score.  See my page on Debt Explained then come back here to continue.
     Simply put, the Credit Rating or Score is nothing more than a gauge that ranks how well you can pay your debts.  If you have Debt and have the assured means to pay the payments, then you are considered a small risk. That is, you will have a higher score or rating.  Typically, depending on the method, individuals have a score and an organization has a rating.
     Having explained this in such a very general way, let me also say that sometimes we may need to incur the risk of debt in order to survive.  However, using a metaphor, we also do not want to buy a luxury like a TV when we are paying for the house with a credit card.


Can a City be without Debt?   I have been asked this question several times.   Though the question may sound silly, the Answer is Yes! (and throw in a Duh because it is a silly question.)   The question usually comes from someone who believes in the first school of thought that Debt is OK. Being Debt Free is not easy but neither is trying to spend everything that you have and pay for the debt that you owe (a.k.a. meeting our current budget).  A budget can also meet a goal of no debt and a reserve amount in the bank. In other words, becoming debt free can be accomplished without over taxing because if we can have a budget to pay our debt, then we can also have a budget to stay out of debt.  Using Google for a quick search, I found an example or two (even three) of cities that are Debt Free (proof that it can be done):


City Debt Liabilities:  One of the best ways to gauge a City's Debt is to look at the Schedule of Debt Payments Required (or the Long Term Liabilities).  "Some people" {note the Air Quotes} say that this is not accurate but I am using the numbers that are provided in the Approved Budget Report and/or Comprehensive Annual Financial Report (CAFR).  Both are produced yearly a few months apart and the data is usually updated to the most current for the time the report is produced (a snapshot).  It does change a little from year to year.  The Fiscal year Starts Oct 1 and Ends Sept 30.  [You can view the full reports online at the City website in the Finance Section.]  Therefore, it is pretty accurate since I am using the reported numbers.

     The last bond election seems to have been back in 2003 and bonds have been obtained periodically over the years.  Since Bonds are more debt, this page is to show a snapshot of the debt at the time listed below.
     You should also know that I am limiting this data from the Debt Liability sections.  I am not including what I consider unnecessary expenses that are paid from operational funds, etc... But I digress, these Debt Liability reports are provided every year but here are the ones that I have generated summaries:


Debt liabilities from the 2009-2010 Adopted Budget:

  • 2009 Lewisville Debt Liabilities:  Looking at the 2009-2010 Debt Section of the approved Budget that I exported to save some bandwidth.  These are pages 103 thru 108 of the 2009-2010 Adopted Budget Report. The Section starts off with a nice summary of projected payments each year.  To get totals, I looked at each budget table to determine the interest totals as well.  The charts are the estimated payment schedule thru the year 2032.  The following chart is a summary of the totals for the bond types:  General Obligation, Certificates of Obligation, and Revenue Bonds.
     
2009-2010 Budget
Type Principle
Interest
Total
Page 106 GO 63,460,000.00 17,961,772.19 81,421,772.19
Page 107 CO 42,730,000.00 22,704,115.93 65,434,115.93
Page 108 RB 53,115,000.00 13,943,729.00 67,058,729.00
         
Totals =>   $159,305,000.00 $54,609,617.12 $213,914,617.12

 

  • Here are some General Statements about this data:
    • The total Debt obligations in 2009 for the City of Lewisville is $213,914,617.12.
    • The interest paid over these total scheduled payments thru 2032 period is estimated to be $54,609,617.12.
      • If you look at each bond table and add up the interest being paid on these 2009-2010 Fiscal year payments, that alone is $6,827,618.14 in interest.
    • Over the period of the payment through 2032, the Interest amount is about 34% the size of the Principle amount in 2009. (Do the Math...  Interest/Principle X 100).
    • According to this Debt Section, we will be making these scheduled payments that are added from the charts referenced in the:
      • In 2009:  $19,167,618.14
      • In 2010:  $18,034,309.46
      • In 2011:  $17,468,090.08
      • You can see the chart for more scheduled payments but this is $54,670,017.68 in scheduled payments over these three years.
      • The interest alone to be paid in these three years is $18,930,017.68 according to the schedule.
    • "Some people" {note the Air Quotes again} say that our debt is only about $159 Million.  That is, if we pay it ALL off today.  Although that is not going to happen, think about the $54,609,617.12 that we will save if we did.


This Section Written 04-22-2012: Debt liabilities from the 2011 CAFR:

  • 2012 Lewisville Debt Liabilities:  Looking at the 2012  Long Term Liabilities Section of the 2011 CAFR that I exported to save some bandwidth as pages 74 thru 78 of the 2011 CAFR (through 09-30-2011).  I looked at each budget table to determine the Principle, Interest, and Totals.  The charts are the estimated payment schedule thru the year 2032.  The following chart is a summary of the totals for the bond types:  General Obligation, Revenue Bonds, and two Certificates of Obligation Bonds.
     
2011 CAFR
Type Principle
Interest
Total
Page 74 GO 58,235,000 13,221,742 71,456,742
Page 75 RB 45,780,000 11,575,863 57,355,863
Page 77 CO 32,310,000 15,119,256 47,429,256
Page 78 CO 7,780,000 3,716,188 11,496,188
Totals =>   $144,105,000 $43,633,049 $187,738,049

 

  • Here is the summary on the Debts Payments Page from the Operating budget FY 2011-2012, P 122.  
  • Here are some General Statements about this data:
    • The total Debt obligations in 2012 (as of CAFR 09-30-2011) for the City of Lewisville is $187,738,049.
    • The interest paid over these total scheduled payments thru 2032 period is estimated to be $43,633,049. 
      • If you look at each bond table and add up the interest being paid this 2012 Fiscal year, that alone is $5,915,592 in interest.
    • Over the period of the payments from 2012 through 2032, the Interest amount is about 30% the size of the Principle amount in 2012. (Do the Math...  Interest/Principle X 100 which is not fuzzy math).
    • According to this Debt Section, we will be making these scheduled payments that are added from the charts referenced in the :
      • In 2012:  $18,100,592
      • In 2013:  $17,595.178
      • In 2014:  $16,645,698
      • You can see the chart for more scheduled payments but this is $52,341,468 in scheduled payments over these three years. 
      • The interest alone to be paid in these three years is $16,366,468 according to the schedule.
    • "Some people" {note the Air Quotes again} say that our debt is only about $144 Million.  That is, if we pay it ALL off today.  Although that is not going to happen, think about the $43,633,049 that we will save if we did.


This Section Written 10-10-2015: Debt liabilities from 2014-2015 Annual Budget:

  • 2015 Lewisville Debt Liabilities:  Looking at the 2015  Long Term Liabilities Section of the 2015 Annual Budget that I exported to save some bandwidth as pages 159 thru 166 of the 2014-2015 Annual Budget.  On page 160, you see the schedule of payments for three Bond types for a total of  $172,720,627.47 thru the year 2032.  I looked at each budget table to determine the Principle, Interest, and Totals.  The following chart is a summary of the totals for the bond types:  General Obligation, Revenue Bonds, and Certificates of Obligation Bonds.
     
2014-15 Budget
Type Principle
Interest
Total
Page 162 GO 73,355,000.00 16,448,361.37 89,803,361.37
Page 164 CO 22,250,000.00 9,827,093.94 32,077,093.94
Page 75 RB 41,650,000.00 9,190,172.16 50,840,172.16
Totals =>   $ 137,255,000.00 $ 35,465,627.47 $ 172,720,627.47

 

  • Here are some General Statements about this data:
    • The total Debt obligations in 2015 (as of Annual Budget 2014-2015) for the City of Lewisville is $172,720,627.47 in payments thru 2032 for the Principle and Interest.
      • Principle as of 2015 is $137,255,000.00
      • The interest alone paid over these total scheduled payments thru 2032 period is estimated to be $35,465,627.47.
    • Over the period of the payments from 2015 through 2032, the Interest amount is about 25.8% the size of the Principle amount in 2015. (Do the Math...  Interest/Principle X 100 which is not fuzzy math).  In other words, if we were out of Debt, our money would go about 25% farther.


This Section will probably be another summary :), I mean :(

 

That's the way I see it

- John Gorena


Voting Schedule
Be a Sheepdog!
Agenda 21 / ECLEI
Calendar
Debt Explained
Dining in Lewisville
What Has America Become?
Arizona SB1070
Republican or Democratic
Texas Primary 101
Christian Citizenship
American Form of Government
287g Related Info
E-Verify
Narco-Terrorism
Pledge of Allegiance
Texas Pledge of Allegiance
Oath Of Office
Pro America Oath
Oath - Boy Scout
Illegal Immigration Articles
Border Agents Jailed
Send a Fax to...
Mortgage Bail Out of 2008
Links to See
Day Laborer Sting
What do you think?
Do You Want This?
Cross Voting
Are you angry yet?
Watch Your Language
Citizenship Requirements
Immigration Numbers USA
OK HB1804 / AZ HB2779
Pro-Life/Choice
Snowball Express
C.F.I.R.
Gun Control
THE ARCHIVES




Judicial Watch






Contact me online

 

If you absolutely must call me:
John Gorena 972-315-0496