Page 125 - FY 2020-21 Budget Cover.pub
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DEBT SERVICE FUND – IN BRIEF
Current debt service for outstanding obligations and associated fees is $793,662. This is a
decrease of $32,692 from FY 2019-20. To finance the current debt service obligation, the
budget provides for estimated ad valorem taxes of $725,162, delinquent tax revenue of $8,000,
penalties and interest of $3,000, interest income of $3,500, and $54,000 from reserves. This
one-time draw on reserves represents a 54.1% decrease in fund balance. This decrease is not
expected to have a negative impact on City operations.
Total outstanding debt obligations for the City as of October 1, 2020 funded by ad valorem taxes
are $12,305,000, which is a decrease of $436,667 from the total outstanding debt obligations for
the previous year. This decrease is attributable to the normal annual retirement of debt.
The ad valorem tax rate for the interest and sinking fund is $0.071160 per $100 valuation, which
is a decrease of $0.006698 from the 2019 interest and sinking fund tax rate.
City of Azle 2020-2021 Budget 114
