Page 433 - NRH FY20 Approved Budget

DEBT SERVICE FUNDS

This section primarily includes four Debt Service Funds: General Debt Service, Utility Debt Service, Park &
Recreation Facilities Development Fund Debt Service, and Aquatic Park Debt Service. (The General Debt
Service Fund is established by ordinances authorizing the issuance of general obligation bonds and certificates
of obligation to provide for the payment of bond principal and interest as they become due and payable.)
Property tax rates and levy are required to be computed and collected, which will provide sufficient funds to
pay principal and interest as it comes due. Debt issuance finances the City’s purchase of land, buildings, land
improvements, and construction and reconstruction of streets and drainage facilities. Current projects are
listed in the Capital Improvement Section of this budget document. Utility Debt Service is the principal and
interest payments for the City’s Utility System. The revenue source for these payments is from current
revenues of the Utility Fund and interest earnings from bond proceeds. The Park & Recreation Facilities
Development Debt Service Fund makes principal and interest payments for debt issued to upgrade the park
and recreational facilities of the City. These funds are secured by a one-half percent sales tax approved by
voters in 1992. Aquatic Park Debt Service Fund makes principal and interest payments for debt issued for
attractions at the aquatic park. Other Debt Service Funds included in this section are Golf Course Fund Debt
Service, Tax Increment Finance Districts #1 and #2 Debt Service, Drainage Utility Fund Debt Service, Building
Services Fund Debt Service, Equipment Services Debt Service. A summary schedule for citywide debt service
is included in the following pages.

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