The Debt Obligations Transparency page provides a broad understanding of the city's finances and debt. Various types of long-term debt have been issued by the city for the acquisition and construction of major capital facilities and equipment, and this page helps with understanding the nature of the debt.
This information is also required by the Texas Comptroller of Public Accounts to qualify for the Comptroller's Transparency Stars program.
Moody’s Investor Service: A3
Standard and Poors; AA
Types of Debt
General Obligation Bonds are issued pursuant to voter authorization for infrastructure and facility projects. The debt associated with these bonds is paid for out of the Debt Service Fund. These projects are accounted for in a governmental bond capital project fund. General obligation bonds have also been issued in previous fiscal years to refund prior debt issues. The debt is supported by revenue provided from real property which is assessed through the taxation power of the local government, property taxes. The CIty of Van does not currently have any General Obligation Bond Debt.
Certificate of Obligation debt is similar to General Obligation bonds in their usage but does not require voter authorization and can be backed by tax revenues, utility revenues, or a combination of the two. Certificates of Obligation where there is solely a tax pledge are accounted for in the Debt Service Fund and the projects are tracked in a governmental bond capital projects fund. Debt where there is a pledge of both taxes and utility revenues is accounted for in the Utility Fund and the associated projects are tracked in a bond water and sewer capital projects fund. The CIty of Van currently has three Certificates of Obligation,secured by property Tax.
Water and Sewer Revenue Bonds are issued to provide funds for certain improvements to the water distribution and wastewater collection systems as well as to refund prior water and sewer debt issues. These bonds are accounted for in the Utility Fund and the associated projects are tracked in a bond water and sewer capital projects fund. This debt is repaid from revenues from the Utility Fund. The City of Van currently has no Water and Sewer Revenue Bonds.
DEBT CHART PLACEHOLDER (Will display a chart showing debt categories and per capita values)
HB 1378: Debt Obligation Reporting
The 84th Legislature passed HB 1378 PDF to increase the transparency of local government debt. Local 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.