City of Aransas Pass Debt Obligations

Debt Obligation Transparency Commitment

The City of Aransas Pass is committed to financial transparency and accountability. Through its “Transparency Star” program, the Texas Comptroller of Public Accounts recognizes local governments across Texas for going above and beyond in their transparency efforts. Transparency is accomplished by providing citizens with clear and meaningful financial information by posting financial documents and summaries, visualizations, downloadable data, and other relevant information.

The City of Aransas Pass is dedicated to increasing our financial transparency in regards to Debt Obligations.

City of Aransas Pass Debt Information

The City of Aransas Pass issues various long-term debt instruments to acquire and/or construct significant capital facilities and equipment for governmental and business-type activities. These instruments include general obligation bonds, certificates of obligation, tax notes payable, revenues bonds, and capital leases.

General Obligation Bonds

General Obligation Bonds are direct obligations with the City’s full faith. Credit pledged toward the payment of these obligations and is issued upon approval by the public via an election to finance projects with benefits that accrue to the entire community. Debt service payments are primarily paid from ad valorem (property) taxes.

Certificates of Obligation

Certificates of Obligation are generally secured by a combination of ad valorem taxes and revenues from a source that the City is authorized by State law to encumber for a public purpose. Voter approval is not required; however, additional notification and public hearing requirements may apply.

Tax Notes

Ad valorem taxes secure Tax Notes. They may be issued to finance public works, utility projects, purchase of equipment, materials, buildings, or land, and pay for certain professional services. State law limits the term to a maximum of seven years.

Revenue Bonds

Bonds are payable from the pledged revenue generated by the respective activity for which the bonds are issued.

The Aransas Pass Municipal Development District (APMDD) is a political subdivision of the State and the City, established to promote economic development within the City as prescribed by Chapter 377 of the Texas Local Government Code. A pledge of dedicated sales taxes secures its Sales Tax Revenue Bonds.

Lease-Purchase Financing Agreements

Lease-Purchase Financing Agreements are used to finance the purchase of capital equipment. The Lessor retains a security interest in the leased property until termination of the lease.

 Total Outstanding Debt Obligation as of September 30, 2019