Page 324 - Hurst FY19 Approved Budget

REVENUE BOND FUND

The Revenue Bond Fund, also known as the Revenue Bond Interest and Sinking Fund,
was established by ordinance to provide for the payment of revenue bond and certificate
of obligation principal and interest. Revenue Bonds and Certificates of Obligation are
a common capital resource for enterprise activities. Revenue bond indentures contain
a legal requirement that revenues derived from enterprise activity be pledged for the
repayment of debt. The same philosophy is utilized by the City for the repayment of
Certificates of Obligation debt. All existing debt includes certificates of obligation and
general refunding bonds. These debt instruments have allowed the City to achieve
substantial interest savings, as detailed in the list below. All debt associated with
the Revenue Bond Fund is used to finance additions and repairs to the City’s utility
infrastructure such as water line and sewer main additions/replacements, water storage
tanks, and pump stations.

The following is a list of bond refundings and associated savings:

FY SAVINGS
2003-2004 $849,693
2006-2007 $1,148,404
2008-2009 $288,500
2010-2011 $270,188
2011-2012 $80,208
2012-2013 $145,560
2014-2015 $97,304
2016-2017 $255,314

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