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.
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 costs.
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 (MADS) 1.
Coverage of maximum
annual debt service (MADS) for the 4th cent TDT, series 2006 bonds from fiscal 2005 revenue is solid at 2.
a state aid intercept to assure local bond repayments, a reserve funded at maximum
annual debt service and backed by a moral obligation make up provision, and a sizable supplemental reserve.