Page 89 - Haltom City FY19 Annual Budget

rate to $2.50 per $100 of assessed valuation (for all City purposes). Self-supporting debt
that will be repaid by revenues generated through the ongoing activities of enterprise
funds or other non-governmental funds are not subject to a legal debt limit. Limits for self-
supporting debt are instead set by the ability of the issuing entity to pay, charter
limitations, profit and loss considerations or other governing body limitations.
The chart below displays the relationship of the City’s adopted total tax rate of $0.66818
in relation to the legal limit of $2.50. The City’s current tax rate is 27% of the legal limit.

Tax Rate Current Available
Limit Tax Rate Tax Rate
$2.50 $0.653 $1.847

The Debt Management Policy of the City limits the total annual tax-supported debt service
to no more than 25% of General Fund spending. The adopted debt service budget of
$6,006,011 includes $4,471,476 of debt supported by property taxes. The property tax
supported debt is the equivalent of 14% of General Fund expenditures, well within the
current policy. For FY2019, the debt services portion of the tax rate is at $0.23.

Future Debt Issuances

In November 2010, voters authorized the City to issue $21,208,000 of general obligation
bonds. With $12,153,000 for streets, $3,655,000 for Fire Station and $5,400,000 for
parks. In May 2018, the voters approved $5.5 million for the construction of a new Fire
Station. Total authorize, issued and proposed FY2019 general obligations bonds are
listed below.

Election Date Purpose Authorized Issued FY2019 Issue
11/2/2010 Streets & Sidewalks $12,153,000 $10,770,000 $1,383,000
11/2/2010 Fire Station $3,655,000 $3,655,000
11/2/2010 Parks $5,400,000 $4,500,000 $900,000
5/5/2018 Fire Station $5,500,000 $0 $5,500,000
Total $26,708,000 $18,925,000 $7,783,000

The Fund Balance of the Debt Service Fund is projected to be $50,319 at September 30,
2019. This reflects a decrease of $256,796 from the estimated FY2018 balance of
$307,115. Policy requires a positive fund balance sufficient, when coupled with transfers
and tax collections, to make the principal and interest payments due in February and
August.

Debt Service Fund Summary and the City’s debt model for FY2019 are included in the
following pages.

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