Treasury & Debt Management

The Treasury and Debt Management function of the Finance Department supports staff, management, and Council initiatives related to capital improvement and sustainability via proposals and management of bond programs and other financing opportunities. Staff also manages and oversees banking contracts, the daily implementation of financial policies (PDF), cash handling, purchasing cards, portfolio management (PDF), revenue projections, budget implementation, sales tax analysis, annual audits, and recovery.

In addition, the Town has adopted Financial Management Policies (PDF) and Investment Policies (PDF) designed to maintain and improve the financial health and well-being of the Town as well as safeguard funds in accordance with Local Government Code, Chapter 2256, the Public Funds Investment Act.
Outstanding Debt
The Debt Service Fund (PDF) accounts for the accumulation of resources to be used for the reserve requirements and payments on existing and incurred debt. The Council allocates ad-valorem (property) tax revenues to this fund for such purposes.

Town of Pantego Outstanding Debt (as of September 30, 2023)

• 2019 Series Certificates of Obligation (CO) in the original issuance amount of $2,735,000 (owed as of 09/30/2023: $2,360,000)
  Purposes: Capital improvements to the water and sewer system including replacement of a waterline on a portion of  Pioneer Parkway (Spur 303) and replacement of sewer lines on Peachtree, Kidd, and Country Club; and to the stormwater system including drains on Nora and Country Club
• 2023 Series Certificates of Obligation (CO) in the original issuance amount of $12,425,000 (as of 09/30/2023, payments had not commenced)
  Purposes: Capital improvements to the water and sewer system including installation of reverse osmosis (RO) filtering systems and the addition of a fifth well site

Pantego Economic Development Corporation (PEDC) Outstanding Debt (as of September 30, 2023)

• 2023 Series Sales Tax Revenue Bonds in the original issuance amount of $1,285,000 (as of 09/30/2023, payments had not commenced)
  Purposes: Capital improvements to Bicentennial Park including new playground structures and underlay, awnings, and fencing along the creek

Comptroller's Local Debt Report
(Fiscal Year Ended September 30, 2022)

Types of Debt Issuances

General Obligation (GO) Bonds are backed by the full faith and credit of the entity, meaning that the Town pledges to leverage its taxation power to generate enough revenue to pay back the bond under any circumstances and includes this type of debt in tax rate calculations. These bonds require voter approval and can only be used to fund the projects authorized in the ballot propositions. This type of debt is typically utilized for non-critical improvements such as new facilities.

Certificates of Obligation (CO) are very similar to GO Bonds except they do not require voter approval. The Town Council, instead, advertises their notice of an intent to issue debt at least 45 days prior to the proposed sale. This type of debt is typically used when the related project is deemed to be critical to the protection of public safety and the provision of basic services. Because CO bonds are backed by property tax revenue, they are included in the calculation of the tax rate necessary to support debt payments.

In 1993, Pantego voters approved the dedication of one-half cent of sales tax revenues for economic development. Economic Development Sales Tax Bonds can be issued by the Pantego Economic Development Corporation (PEDC) for projects that are qualified for funding via this legally restricted revenue stream.

Utility Revenue Bonds can be issued to finance capital projects and improvements related to the water, wastewater, and stormwater systems. This type of bond is repaid through fees charged to the customers of the water system rather than property tax revenues.