General Debt Service

Repayment is structured with a minimum annual payment, with an additional accelerated portion (amount above the guaranteed minimum annual payment) based on traffic counts. The minimum annual payment is $2,009,570. The City Council has deemed any amount above the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. The city has redeemed an additional $17,037,448 resulting in $8,575,962 in interest savings. Combined with general obligation refunding and increasing property values, this early redemption process has also helped to decrease the debt service tax rate by just under $0.25 since Fiscal Year 2014.

To date, the 2014 Certificates of Obligation and the 2017 Tax Notes have not impacted the debt service tax rate. The proceeds from the certificates were used to fund construction of Fire Station #2 and the Animal Shelter, and the proceeds from the tax notes funded fire department equipment. The payments have been made from fund balance in the Debt Service fund. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments.

GENERAL DEBT SERVICE FUND STATEMENT

History Projected Budget

2020 Actual 2021 Budget 2021 Revised 2022 Budget % Change

Beginning Fund Balance 3,048,331 2,606,453 2,627,323 4,128,666 58.40%

Revenue Property Tax Revenue Property Tax Penalty Income Delinquent Property Tax

3,559,987 3,220,300 3,366,470 3,367,835 4.58% 12,012 15,000 15,000 15,000 71,257 20,000 55,000 35,000 75.00% Interest Income 23,428 20,000 6,200 5,000 -75.00% TXDOT Pass Through Toll Reimbursement 4,019,140 4,019,140 4,019,140 4,019,140 7,685,825 7,294,440 7,461,810 7,441,975 2.02%

Transfers In General Fund (Fire Engine) Capital Purchase (Pinson Farm) 53,664 - - - 51,108 51,108 51,108 51,108 104,772 51,108 51,108 51,108 -

Total Revenue 7,790,597 7,345,548 7,512,918 7,493,083 2.01%

Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

Fund Balance

Council Committed Fund Balance Ending Fund Balance

9,250 9,500 9,500 9,500 6,547,078 4,555,000 4,720,000 4,920,000 8.01% 1,655,277 1,382,711 1,282,075 1,038,155 -24.92% 8,211,605 5,947,211 6,011,575 5,967,655 0.34%

2,627,323 4,004,790 4,128,666 5,654,093 41.18%

180,756 2,190,326 2,190,326 2,190,326 2,446,567 1,814,464 1,938,340 3,463,767 90.90%

General Debt Service Fiscal Year Principal Interest Total Payments 2022 4,920,000 1,038,155 5,958,155 2023 4,055,000 861,143 4,916,143 2024 3,305,000 740,967 4,045,967 2025 3,080,000 640,919 3,720,919 2026 3,180,000 540,781 3,720,781 2027 3,365,000 432,450 3,797,450 2028 1,885,000 350,748 2,235,748 2029 1,935,000 294,068 2,229,068 2030 2,005,000 234,523 2,239,523 2031 2,055,000 171,057 2,226,057 2032 2,410,000 101,190 2,511,190 2033 495,000 37,569 532,569 2034 515,000 19,178 534,178 2035 160,000 7,350 167,350 2036 165,000 2,475 167,475 33,530,000 5,472,572 39,002,572 The twelve current outstanding tax supported debt issues owed as of Fiscal Year 2022 total $39,002,572. This is the total of $33,530,000 in remaining principal payments and $5,472,572 in interest.

2008 General Obligation Bonds

Original Issue Amount: $39,605,000 Original Date of Issue: July 15, 2008 Maturity Date: August 15, 2033

2008 General Obligation Bonds Fiscal Year Principal Interest Total Payments 2022 - 53,250 53,250 2023 - 53,250 53,250 2024 - 53,250 53,250 Use of Bond Proceeds 2025 - 52,710 52,710 "Proceeds from the sale of the Bonds will be 2026 - 53,250 53,250 used to (i) provide funds for the design, 2027 335,000 53,250 388,250 development, construction, extension, 2028 160,000 35,663 195,663 expansion and/or improvement of certain 2029 170,000 28,263 198,263 state highway facilities and roadways 2030 185,000 2031 240,000 20,188 11,400 205,188 251,400 located within the City and as more 2032 - - specifically described in the {Pass Through} 2033 - - Agreement, (ii) pay interest on the Bonds for 1,090,000 414,473 1,504,473 the period authorized by State law, and (iii) pay the costs of issuance on the Bonds..."

Initial Design of three Pass Through Toll Projects Total Project Cost: $9,598,084 2008 Bond Allocation: $8,687,712 Completion Date: March 2013

FM 548 @ US HWY 80 Roadway Reconstruction & Widening Total Project Cost: $14,818,921 2008 Bond Allocation: $8,867,416 Completion Date: October 2015

FM 740 Roadway Reconstruction & Widening Total Project Cost: $7,084,333 2008 Bond Allocation: $4,889,896 Completion Date: May 2016

FM 741 Roadway Reconstruction & Widening Total Project Cost: $13,604,976 2008 Bond Allocation: $13,604,976 Completion Date: October 2015

Bond Interest Recognizing that there would be a gap between the time where bond payments became due and the time that TxDOT began making the Pass Through Reimbursements, $3,239,848 of the bond issue was used to decrease the annual Series 2008 Bond Payments from Fiscal Year 2009 to Fiscal Year 2012. This reduced the impact on the debt service tax rate over three years.

Bond Issuance Costs Total Cost: $315,153

All the proceeds from the 2008 General Obligation Bonds have been spent.

Pass Through Toll Program – Early Redemption The Pass Through Toll Program is an agreement between the City and the Texas Department of Transportation (TxDOT). With this agreement, the City sold the 2008 General Obligation Bonds to fund the expansion of three state owned roadways within the city limits and oversaw the construction. Upon completion of the projects, responsibility for maintenance of the roadways was returned to the state and TxDOT began to reimburse the City annually.

TxDOT began making annual payments to the City in Fiscal Year 2013. This repayment is structured with a minimum annual payment and an additional accelerated portion (the amount above the guaranteed minimum annual payment) based on traffic counts. The minimum annual payment is $2,009,570. The City Council has deemed any amount above the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. As of 2022, the City has redeemed an additional $17,037,448 resulting in $8,575,962 in interest savings.

Fiscal Year

2013

2014 2015

2016

2017

2018

2019 2020

2021

EARLY REDEMPTION PAYMENT HISTORY & INTEREST SAVINGS

Pass Through Reimbursement Amount Amount Applied to the annual 2008 Bond Payments Remaining Available for Early Redemption

Early Redemption Interest Savings

3,606,373

3,685,934 3,901,756

4,019,140

4,019,140

4,019,140

4,019,140 4,019,140

4,019,140 35,308,903

2,009,570

2,009,570 2,009,570

2,009,570

2,009,570

2,009,570

2,009,570 2,009,570

2,009,570 18,086,130

1,596,803 1,590,000 1,359,450

1,676,364 1,675,000 1,281,313 1,892,186 1,890,000 1,260,175

2,009,570 1,955,000 1,088,700

2,009,570 1,910,000 894,750

2,009,570 2,005,000 631,575

2,009,570 2,000,000 528,075 2,009,570 2,007,447 616,313 2,009,570 2,005,000 915,612 17,222,773 17,037,448 8,575,962

Refunding The following amounts have been refunded from the 2008 General Obligation Bonds:

2011 General Obligation Refunding Principal Amount Refunded: $1,200,000 Interest Savings: $94,825

2011 General Obligation Refunding

2011 General Obligation Refunding

Original Issue Amount: $2,295,000 Fiscal Year Principal Interest Total Payments Original Date of Issue: August 2, 2011 2022 - 38,888 38,888 Maturity Date: August 15, 20322023 - 38,888 38,888 2024 - 38,888 38,888 2025 - 38,888 38,888 Interest savings from this refunding will be 2026 - 38,888 38,888 $114,573. 2027 - 38,888 38,888 2028 - 38,888 38,888 Use of Bond Proceeds 2029 2030 38,888 38,888 38,888 38,888 "Proceeds from the sale of the Tax-Exempt 2031 - 38,888 38,888 Bonds will be used (i) to refund a portion of 2032 915,000 38,888 953,888 the City's outstanding tax-exempt debt ...as 915,000 427,763 1,342,763 described on Schedule 1 {in the Official Statement} for restructuring purposes ... and (ii) to pay the costs of issuance associated with the sale of the Tax-Exempt Bonds.."

Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2005A Principal Amount Refunded: $20,000 Interest Savings: $410 Proceeds from the 2005A Certificates of Obligation funded: - East Side Drainage Project

General Obligation Bonds, Series 2007 Principal Amount Refunded: $910,000 Interest Savings: $19,338

Pass Through Toll Revenue and Limited Tax Bonds, Series 2008 Principal Amount Refunded: $1,200,000 Interest Savings: $94,825

Bond Issuance Costs Total Cost: $165,000

All of the proceeds from the 2011 General Obligation Refunding have been spent.

2012 General Obligation Refunding

Original Issue Amount: $2,235,000 Original Date of Issue: November 6, 2012 Maturity Date: February 15, 2023

Interest savings from this refunding will be $448,695.

2012 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2022 195,000 4,680 199,680 2023 195,000 1,609 196,609 390,000 6,289 396,289

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used to refund a portion of the City's outstanding debt ...and to pay the costs of issuance associated with the issuance of the Bonds."

Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2000B Principal Amount Refunded: $350,000 Interest Savings: $63,937 Proceeds from the 2000B Certificates of Obligation funded: - A partial widening of Pinson Road (FM740) - A portion of the Central Fire Station Expansion

Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003 Principal Amount Refunded: $1,830,000 Interest Savings: $384,759 Proceeds from the 2003 Certificates of Obligation funded: - Mulberry Park: Extend Forney Middle School Parking Lot - Mulberry Park: ADA Concessions & Restroom at the Baseball Complex - Mulberry Park: Restrict Access to Parking via Fence - Mulberry Park: City Maintenance Building - Mulberry Park: Remove Old Concession and metal buildings - Henderson Park: Irrigate Soccer Complex - Henderson Park: Dirt work - Mulberry Park: Regrade Baseball Fields - Eastside Park: Replace Play Structure - Mulberry Park: Extend Parking lot at Johnson Elementary & Baseball Complex - Eastside Park: Install Crushed Granite for Shaded Areas - Mulberry Park: Upgrade Restroom & Concession Facility at the Softball Complex - Hamblen Park: Install Linear fence and stone park sign - FISD: Install Practice Fields at 3 Elementary Schools - FISD: Install Practice Fields at Forney High School - Forney Community Park Design

Bond Issuance Total Cost: $55,000

All the proceeds from the 2012 General Obligation Refunding have been spent.

2012 Certificates of Obligation

2012 Certificates of Obligation Fiscal Year Principal Interest Total Payments 2022 50,000 15,700 65,700 2023 50,000 14,700 64,700 2024 55,000 13,650 68,650 2025 55,000 12,550 67,550 2026 55,000 11,313 66,313 2027 60,000 9,875 69,875 2028 60,000 8,375 68,375 2029 65,000 6,813 71,813 2030 65,000 5,025 70,025 2031 65,000 3,075 68,075 2032 70,000 1,050 71,050 650,000 102,125 752,125 Original Issue Amount: $1,030,000 Original Date of Issue: November 6, 2012 Maturity Date: February 15, 2032

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for the purpose of paying contractual obligations incurred for (i) the acquisition of Mulberry Park: and (ii) paying legal, fiscal and engineering fees in connection with such project."

Total Project Cost: $1,030,000 2007 Bond Allocation: $1,030,000 Completion Date: March 2013

All of the proceeds from the 2012 Certificates of Obligation have been spent.

2014 General Obligation Refunding

Original Issue Tax Supported Amount: $2,148,109 ($3,440,000 total issue) Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2025

Interest savings from this refunding will be $213,278.

2014 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2022 220,000 18,900 238,900 2023 230,000 14,113 244,113 2024 240,000 8,825 248,825 2025 245,000 3,069 248,069 935,000 44,906 979,906

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I [in the Official Statement} and (ii) to pay the costs of issuance associated with the sale of the Bonds.. "

Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2005A Principal Amount Refunded: $2,148,109 Interest Savings: $213,278 Proceeds from the 2005A Certificates of Obligation funded: - Eastside Drainage Project

All proceeds from the 2014 General Obligation Refunding have been spent.

2014 Certificates of Obligation

Original Issue Amount: $4,945,000 Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2034

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (i) the construction of public works, to wit: (a) constructing and equipping a new fire station and (b) constructing and equipping a new animal shelter, and (2) cost of issuance associated with the sale of the Certificates."

2014 Certificates of Obligation Fiscal Year Principal Interest Total Payments 2022 235,000 118,413 353,413 2023 240,000 113,363 353,363 2024 250,000 107,538 357,538 2025 260,000 100,838 360,838 2026 265,000 93,619 358,619 2027 275,000 86,194 361,194 2028 285,000 78,138 363,138 2029 295,000 69,069 364,069 2030 310,000 59,238 369,238 2031 320,000 47,800 367,800 2032 330,000 34,800 364,800 2033 345,000 21,300 366,300 2034 360,000 7,200 367,200 3,770,000 937,506 4,707,506 Fire Station #2 Total Project Cost (Budget): $4,102,209 2014 Certificate of Obligation Allocation: $3,013,994 Estimated Project Completion Date: February 2017

Animal Shelter Total Project Cost: $2,138,899 2014 Certificate of Obligation Allocation: $2,000,000 Estimated Project Completion Date: April 2017

All proceeds from the 2014 Certificates of Obligation have been spent.

To date, the 2014 Certificate of Obligation have not impacted the debt service tax rate. These payments have been made from fund balance in the General Debt Service Fund. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments

2015 General Obligation Refunding

Original Issue Amount: $8,585,000 Original Date of Issue: June 1, 2015 Maturity Date: September 30, 2027

Interest savings from this refunding will be $1,230,068.

2015 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2022 - 329,475 329,475 2023 980,000 312,325 1,292,325 2024 1,805,000 263,588 2,068,588 2025 1,865,000 194,700 2,059,700 2026 1,935,000 118,700 2,053,700 2027 2,000,000 40,000 2,040,000 Use of Bond Proceeds 8,585,000 1,258,788 9,843,788 "Proceeds from the sale of the Bonds will be used (i) to refund certain outstanding obligations of the City described on Schedule I {in the Official Statement}... for debt savings; and (ii) to pay the costs associated with the issuance of the Bonds."

General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,955,000 Interest Savings: $1,230,068

All the proceeds from the 2015 General Obligation Refunding have been spent.

2016 Certificates of Obligation Fiscal Year Principal Interest Total Payments 2022 105,000 54,281 159,281 2023 110,000 51,056 161,056 2024 115,000 47,681 162,681 2025 115,000 44,156 159,156 2026 120,000 39,956 159,956 2027 125,000 36,306 161,306 2028 130,000 33,675 163,675 2029 130,000 30,831 160,831 2030 135,000 27,681 162,681 2031 140,000 24,156 164,156 2032 145,000 20,325 165,325 2033 150,000 16,269 166,269 2034 155,000 11,978 166,978 2035 160,000 7,350 167,350 2036 165,000 2,475 167,475 2,000,000 448,178 2,448,178

$2,500,000 Estimated Project Completion Date: July 2018 Original Issue Amount: $2,500,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2034

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (1) street improvements, including drainage, curbs, gutters, utility line relocation, street lighting, and /or the acquisition of land and rights-of-way therefor, and (2) the cost of issuance associated with the sale of the Certificates."

Redbud Roadway Reconstruction Total Project Cost (Budget): $2,833,079 2016 Certificate of Obligation Allocation:

All of the proceeds from the 2016 Certificates of Obligation Refunding have been spent.

2016 General Obligation Refunding

Original Issue Amount: $8,220,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2023

Interest savings from this refunding will be $700,088.

2016 General Obligation Refunding (2007) Fiscal Year Principal Interest Total Payments 2022 1,590,000 50,050 1,640,050 2023 655,000 13,100 668,100 2,245,000 63,150 2,308,150

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I {in the Official Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..."

General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,475,000 Interest Savings: $700,088

2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds

2017 Subordinate Lien Pass Through Toll Refunding (2008)

Original Issue Amount: $11,465,000 Fiscal Year Principal Interest Total Payments Original Date of Issue: August 15, 2017 2022 1,830,000 262,200 2,092,200 Maturity Date: August 15, 20312023 885,000 170,700 1,055,700 2024 115,000 144,150 259,150 2025 120,000 140,700 260,700 Interest savings from this refunding will be 2026 390,000 137,100 527,100 $1,228,114. 2027 145,000 125,400 270,400 2028 725,000 119,600 844,600 Use of Bond Proceeds 2029 745,000 2030 770,000 2031 750,000 90,600 60,800 30,000 835,600 830,800 780,000 "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the 2008 Bonds 6,475,000 1,281,250 7,756,250 (as shown in Schedule I) (the “Refunded Bonds”) and (ii) for payment of professional services of attorneys, financial advisors and other professionals in connection with the issuance of the Bonds.”

Pass-Through Toll Revenue and Limited Tax Bonds, Series 2008 Principal Amount Refunded: $12,170,000 Interest Savings: $1,228,114

All of the proceeds from the 2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds have been spent.

2017 Tax Notes

2017 Tax Notes

Original Issue Amount: $2,055,000 Original Date of Issue: August 15, 2017 Maturity Date: February 15, 2024

Fiscal Year Principal Interest Total Payments 2022 300,000 23,400 323,400 2023 310,000 14,250 324,250 2024 320,000 4,800 324,800 Use of Proceeds 930,000 42,450 972,450 “Proceeds from the sale of the Notes will be used to pay for (i) public safety equipment and (ii) professional services of attorneys, financial advisors and other professionals in connection with the projects and the issuance of the Notes.”

2017 Fire Arial Platform Total Purchase Budget: $1,341,519 2017 Tax Note Allocation: $1,341,519 Estimated Completion Date: December 2018

2017 Fire Engine/Pumper Total Purchase Budget: $727,500 2017 Tax Note Allocation: $713,481 Cost variance is funded from the General Fund. Estimated Completion Date: September 2018

All of the proceeds from the 2017 Tax Notes have been spent.

2020 General Obligation Refunding

2020 General Obligation Refunding

Original Issue Amount: $5,705,000 Fiscal Year Principal Interest Total Payments Original Date of Issue: November 19, 2020 2022 395,000 68,918 463,918 Maturity Date: February 15, 20322023 400,000 63,791 463,791 2024 405,000 58,598 463,598 2025 415,000 53,309 468,309 Interest savings from this refunding will be 2026 415,000 47,956 462,956 $1,061,209. 2027 425,000 42,538 467,538 2028 525,000 36,410 561,410 2029 530,000 2030 540,000 29,606 22,704 559,606 562,704 Use of Bond Proceeds 2031 540,000 15,738 555,738 "Proceeds from the sale of the Bonds will be 2032 950,000 6,128 956,128 used (i) to refund a portion of the City's 5,540,000 445,695 5,985,695 outstanding debt (the Refunded Obligations) as described on Schedule I {in the Official Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..."

Tax & Waterworks & Sewer System Rev. CO, Series 2011 (Tax Supported) Principal Amount Refunded: $2,385,000 Interest Savings: $610,053

Tax & Waterworks & Sewer System Rev. CO, Series 2011 (W&S Supported) Principal Amount Refunded: $1,765,000 Interest Savings: $451,156

General Obligation Refunding Bonds, Series 2011 Principal Amount Refunded: $1,380,000 Interest Savings: $185,394

All of the proceeds from the 2016 General Obligation Refunding have been spent