Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
2009 BUDGET
service requirements of any new debt when combined with existing debt service, does not exceed the debt service extension
base established by the Act. The debt service extension limitation for the District is $134.6 million.
Additional legislation was passed in 1997 to expand the “limited bond’ authority for the District. Public Act 90-485
excludes debt associated with the TARP program from the limitations imposed by prior Tax Cap legislation.
• The amount of non-referendum Corporate Working Cash Bonds which, when added to a) proceeds from the sale of
working cash bonds previously issued, b) any amounts collected from the corporate working cash fund levy, and c)
amounts transferred from the construction working cash funds, may not exceed 90 percent of the amount produced by
multiplying the maximum general corporate tax rate (41 cents per $100 of EAV) permitted by the last known equalized
assessed valuation of all property in the District ($156.0 billion) at the time the bonds are issued, plus 90 percent of the
last-known entitlement of the Personal Property Replacement Tax. At December 31, 2007 (last audited numbers), the
District's remaining Corporate Working Cash Fund Bond authorization equaled $324.5 million.
Current and Future Bond Debt Service
The exhibit below reflects the current debt service obligation of the District. In May 2006, the District issued $346.6 million
General Obligation Refunding Bonds, Unlimited Tax Series, and $50.8 million General Obligation Refunding Bonds, Limited
Tax Series, which refunded the Variable Rate Refunding Bonds Unlimited Tax Series A and Limited Tax Series B of June,
2002, respectively.
A July 2006 issuance of General Obligation Capital Improvement Bonds, $100 million Unlimited Tax Series and $250 million
Limited Tax Series, will provide capital project funding through 2008. As current State Revolving Fund loans are converted to
bonds, additional annual debt service will be added. These amounts will be in the range of $1 to $3 million per year.
In March 2007, the District issued $382.02 million in general obligation refunding bonds to refund December 2002 Unlimited
Series C and Series E, fixing the variable rate bonds and terminating the associated LIBOR interest rate swap on Series E. The
March 2007 bond issue also refunded the July 2006 Limited and Unlimited Bonds. Total debt service and therefore future
District tax levies will be reduced by $21.6 million through 2035.
On December 1, 2008 there was a call for redemption of $43,700,000 principal value Refunding Bonds, Series July, 1997,
maturities of 2010 through 2014. The call was financed with $22 million of retained interest income and other funds available
in the Capital Improvements Funds.
The debt for future bond sales is not included in this exhibit. Future bond sales are based on estimated cash flow requirements
of the Capital Improvements Bond Fund program. It is estimated that the next Capital Improvement Bond issue will be
necessary in early 2009. The estimates for total debt service assuming future bond sales are included in the Five-Year Financial
Forecast included in Section II, Financial Summaries by Fund, of this budget document.
$160
DEBT SERVICE
(Millions of Dollars)
District General Obligation Bonded Debt Service
(Includes IEPA Debt)
$140
$120
Interest
Principal
$100
$80
By 2036 all current outstanding
debt will be matured.
$60
$40
$20
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Years
(Debt service is for the year ending December 31)
422
422