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Debt Obligations
The City of Midland is Committed to Transparency. Transparency provides our citizens with information and promotes accountability. The City's current outstanding debt is comprised of general obligation (GO) bonds, certificates of obligation (CO) debt, leases, and subscription-based information technology arrangements.
General Obligation Bonds: are debt instruments issued by State and local governments as a source of funds for the acquisition and construction of major capital equipment, infrastructure, and facilities. They are backed by the full faith and credit of the issuer, including the power to tax its citizens. GO bonds must be approved by the voters and the City is required to compute at the time other taxes are levied, the rate of tax required to provide a fund to pay interest and principal at maturity.
Fitch affirmed the City’s AAA rating for its Obligation bonds. Moodys affirmed the City's Aa1 rating for it's obligations bonds.
Certificates of Obligations: are generally short-term in nature. They are backed by taxes, fee revenues, or a combination of the two and do not require a vote by the citizens.
Leases: defined as an agreement or contract that conveys the right to control the use of a non-financial asset for some length of time in exchange for consideration. Generally, payments are made from operating revenue sources as required.
Subscription-based Information Technology Arrangements (SBITAs): defined as an agreement or contract that conveys control of the right to use another party’s information technology (IT) software, alone or in combination with tangible capital assets, for a specific period in an exchange or exchange-like transaction.
| Year | Tax Supported | Revenue Supported | Total Debt |
|---|---|---|---|
| 2018 | $105,700,000 | 34,555,000 | $140,255,000 |
| 2019 | 132,105,000 | 48,990,000 | 181,095,000 |
| 2020 | 156,170,000 | 61,645,000 | 217,815,000 |
| 2021 | 162,530,000 | 94,570,000 | 257,100,000 |
| 2022 | 156,130,000 | 338,660,000 | 494,790,000 |
| 2023 | 173,280,000 | 334,685,000 | 507,965,000 |
| 2024 | 165,920,000 | 381,910,000 | 547,830,000 |
| 2025 | $192,021,250 | 394,248,750 | $586,270,000 |