OUTSTANDING BOND DEBT INFORMATION

This section provides historical and current information on all outstanding bond debt of the City of Kyle.  These tax-exempt bonds were approved for issuance by the Kyle City Council and were issued in various fiscal years.  The net cash proceeds from these tax-exempt bonds were utilized to pay for costs associated with the acquisition, design, and construction of capital assets such as roads, sidewalks, buildings, parks, water and wastewater infrastructure, plant equipment, and machinery, etc.

The attached schedules provide an overall understanding of the various types of bond debt which have been issued by the City of Kyle and the current balance of the outstanding debt.

Other Long-Term Contractual Obligations:

In addition to bond debt issued directly by the City of Kyle, the City has also entered into contractual agreements with third party entities whereby incurring financial obligations for: (1) leasing vehicles and trucks for its operations from Enterprise Fleet Management, and (2) reimbursing Alliance Regional Water Authority, and Guadalupe Brazos River Authority for the City’s share of capital expenditures incurred by these entities to acquire and construct infrastructure for the provision of potable drinking water supply to the City of Kyle.

Enterprise Fleet Management (EFM).  The City of Kyle has entered into a contractual arrangement to lease new vehicles required for its operations including sedans, SUVs, vans, light and heavy duty trucks, police pursuit vehicles, and specialized vehicles such as for animal control and police evidence vehicles.  The lease term ranges from 36 months to 60 months for the various leased fleet vehicles.  The current lease obligation is approximately $640,000 per fiscal year as of January 2021.

This lease arrangement with EFM does not include heavy equipment such as dump trucks, tanker trucks, backhoes, vactor trucks, and other construction equipment.  The City continues to purchase and own its heavy equipment and machinery.

Alliance Regional Water Authority (ARWA).  This agency, formerly named Hays Caldwell Public Utility Agency, was established by sponsoring public entities which includes the cities of Buda, Kyle, San Marcos and the Canyon Regional Water Authority who have entered into a regional water supply contract.  ARWA agreed to design, finance, acquire, construct, own, operate, and maintain ground water leases, water wells and associated improvements, and all other capital infrastructure assets necessary for the pumping, treatment, storage, and transmission to enable the delivery of potable drinking water to the sponsoring public entities including the City of Kyle.

The City of Kyle has agreed to make monthly payments to ARWA in amounts sufficient to meet financial obligations incurred by ARWA for the City’s share (28.17%) of both operations and maintenance costs and for all capital infrastructure costs for the delivery of treated potable drinking water to the City.

To date, ARWA has issued, in four separate series, a total of $71.26 million in 30-year contract revenue bond debt for the City of Kyle’s share of capital infrastructure costs of which $70.42 million remains outstanding as of August 2020.  The City’s average capital and financing cost reimbursement payment to ARWA is approximately $3.30 million per year.  The capital cost reimbursement payments due to ARWA are made from the City’s Water Utility Fund, a rate and user-fee based enterprise operation of the City of Kyle.

Guadalupe Brazos River Authority (GBRA).  The City of Kyle has entered into a long-term water supply contract with GBRA.  Under this contract, the City is obligated to pay for its proportionate share of both operations and maintenance (O&M) costs and all capital costs incurred by GBRA for pumping, treatment, storage, and transmission that is necessary for the delivery of potable drinking water to the City of Kyle.

The City’s current portion of capital and financing cost reimbursement payment to GBRA is approximately $1.19 million per year as of January 2021.  The capital cost reimbursement payments due to GBRA are made from the City’s Water Utility Fund, a rate and user-fee based enterprise operation of the City of Kyle.