Credit concerns continue to center on JEA's debt profile, including higher than average leverage, and annual debt service
that is increasing as a result of the continued financing of $100 million-$200 million in debt additions each year (2011 debt service is anticipated to be $129 million, roughly double 2004 levels).
30, 2007 LHV covered maximum annual debt service
by a solid 1.
25 times (x) annual debt service
and an additional bonds test of historical revenues at least 1.
0x coverage of maximum annual debt service
from all revenues on a historical basis and 1.
These features include: the bonds' level debt service structure and short, 20-year life; the additional liquidity provided by minimum fund balance levels (equal to maximum annual debt service
[MADS]); and a pledge to refill reserve draws from legally available funds of the 22nd District Agricultural Association (the district), a state entity which owns and operates the 410-acre Del Mar Fairgrounds facility.
Maximum annual debt service
(MADS) based on fiscal 2005 pledged revenues is solid 1.
A reserve for all parity debt, at the least of 10% of bond par, 125% of average annual debt service
or maximum annual debt service
, is available to make up shortfalls that could potentially occur due to any missed repayments.
1x rate covenants, both systems are required to maintain a bond reserve at the lesser of maximum annual debt service
on the bonds, 1.
3 times (x) maximum annual debt service
, based on current revenues, helps alleviate these overlying pressures.
The bonds have second priority to 1999 Metropolitan Council Bonds, which were issued for phase one of the ARMER system and first receive the amount necessary to pay annual debt service
The city has the option to permanently remove the general fund pledge once annual net sewer revenues cover maximum annual debt service
(MADS) at least 1.
Debt service coverage for the subordinate and senior tax allocation bonds, including the new issues, is sound with fiscal 2007 projected revenues covering maximum annual debt service