TABLE 8 Revenue Bond Coverage, Test 1 – Last Ten Fiscal Years (in thousands) This coverage test measures whether Net Revenues Available for Debt Service are sufficient to cover 1.2 times (or 120%) of annual debt service requirements. The Authority consistently exceeds the required coverage ratio. Calculations are based on the Revenue Covenant and associated definitions within the Authority’s Master Bond Indenture. Gross Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Revenues (1) $ 159,510 145,924 145,173 152,595 140,209 141,305 137,450 145,010 134,326 116,662 Operating Expenses (2) $ 100,656 97,334 93,178 87,158 82,677 78,965 77,177 74,567 72,196 68,388 Net Revenues 1.2 Times Senior Available for Debt Service Debt Service Requirements (3) $ 58,854 48,590 51,995 65,437 57,532 62,340 60,273 70,443 62,130 48,274 $ 9,479 9,462 9,512 9,512 9,512 9,907 10,253 11,506 12,392 16,072 Coverage (1.0 Req’d) 6.21 5.14 5.47 6.88 6.05 6.29 5.88 6.12 5.01 3.00 (1) Gross revenues include all revenue categories except contributions from developers, funds received from grants and equity in earnings of UOSA. (2) Operating expenses include operating expenses plus principal and interest payments on UOSA debt and payments on capacity agreements with Fairfax Water. (3) Effective with the closing of a financing agreement with the VRA on June 28, 2007, all of the outstanding balances with the VRA become parity with the outstanding Revenue and Refunding Bonds debt. In fiscal years 2011 through 2020, the Authority made advanced payments to the Trustee toward debt service for the subsequent year. Source: Prince William County Service Authority. TABLE 9 Revenue Bond Coverage, Test 2 – Last Ten Fiscal Years (in thousands) The Authority is required to meet at least one of the two coverage ratios reported in the table below. Coverage A demonstrates the Authority’s ability to withstand a 50% reduction of Availability Fees and maintain Adjusted Net Revenues sufficient to cover 100% of annual debt service requirements. Coverage B demonstrates the Authority’s ability for Adjusted Net Revenues plus 50% of the Unrestricted Reserves (primarily cash and investments) to cover 1.5 times (or 150%) of annual debt service requirements. The Authority consistently exceeds these required coverage ratios. Calculations are based on the Revenue Covenant and associated definitions within the Master Bond Indenture. “Either/Or” Coverage Requirement Adjusted Net Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net Revenues Available for Debt Service $ 58,854 48,590 51,995 65,437 57,532 62,340 60,273 70,443 62,130 48,274 Less 50% Developer Charges $ 14,498 10,937 13,889 18,309 13,236 16,592 15,446 20,861 17,172 10,938 Adjusted Net Revenues $ 44,356 37,653 38,106 47,128 44,296 45,748 44,827 49,582 44,958 37,336 Senior Debt Service Requirements (2) $ 7,899 7,885 7,927 7,927 7,927 8,256 8,544 9,588 10,327 13,393 Coverage A 50% Unrestricted Coverage B (1.0 Req’d) Revenues Plus Reserves (1) 5.62 4.78 4.81 5.95 5.59 5.54 5.25 5.17 4.35 2.79 (1) Unrestricted Reserves is the unrestricted fund balance, less one month’s budgeted operating expense. (2) All of the outstanding balances with the VRA become parity with the outstanding Revenue and Refunding Bonds debt. In fiscal years 2011 through 2020, the Authority made advanced payments to the Trustee toward debt service for the subsequent year. Source: Prince William County Service Authority. $ 213,895 201,805 213,518 216,640 213,779 204,675 210,613 205,698 208,736 189,403 (1.5 Req’d) 27.08 25.59 26.94 27.33 26.97 24.79 24.65 21.45 20.21 14.14 98 STATISTICAL SECTION TABLES 8, 9
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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