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City reports $86.9M in outstanding general obligation bonds, special and TIF debt; $40M infrastructure bond closing targeted by September
Summary
Interim CFO Fidelis Malenbecker outlined outstanding general obligation bonds of about $86.9 million, a $18 million special-obligation bond backed by a 1% sales tax, $6.4 million in TIF bonds, and a recently approved $40 million infrastructure bond expected to close by September.
Interim Chief Financial Officer Fidelis Malenbecker told the council the city carries about $86.9 million in outstanding general obligation bond principal with annual payments near $10.7 million. "A lot of them... refer to refunding," Malenbecker said, describing past refinancing to lower rates.
The presentation separated bond types: the special-obligation bond tied to the 1% sales tax has roughly $18 million outstanding with a $4.16 million annual payment and a maturity around 2030; tax-increment financing bonds total about $6.4 million with annual payments around $1.1 million. Malenbecker noted the city issued a $40 million infrastructure bond referenced in a prior meeting and said staff is "trying to get closed by the September." The presentation also noted that water and sewer revenue bonds managed by Jackson Water were not included on the city’s slide because Jackson Water alone is obligated to make those payments.
Malenbecker reviewed a range of other borrowing: multiple state revolving loans (MDEQ and Mississippi Department of Health loans), Mississippi Development Authority loans, HUD Section 108 loans and other technology and equipment loans. She said the city plans to use CDBG allocations to retire the HUD Section 108 loan "once we get all the documents in place."
On long-term debt health, Malenbecker said statutory limits provide headroom: "When you look at your indebtedness... you'll be looking at about 15%. The statute allows for... your general obligation bond commitments to be about 15%." She said the city still has bonding capacity and that overall indebtedness is within typical benchmarks.
Council members asked for more detail about revenue sources that would service particular redevelopment or urban-renewal debt, specifically JRA-managed properties such as parking garages and Union Station. Staff said JRA financial statements will be provided so council can review expected revenue streams that support those obligations.
No formal debt issuance action was taken at this hearing; Malenbecker’s presentation summarized outstanding obligations, upcoming refinancing opportunities and staff work to reconcile updated figures with Jackson Water and other entities.
