Page 78 - Forest Hill FY21 Annual Budget

DEBT SERVICE FUND (30)

The Debt Service Fund (Lnterest and Sinking Fund, or I&S) was established for the purpose of servicing the
City's general obligation debt. Revenue sources for the fund include the interest and sinking (I&S) portion of
the annual ad valorem tax levy, tax collections penalties and interest, interest earnings, and inter-fund transfers.
Debt service payments are forwarded to the designated paying agent bank as semi-annual principal and interest
requirements come due for each debt issue.

I Ad Valorem Tax Rate

All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing,
direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem
tax debt within the limits prescribed by law. A1ticle XI, Section 5, of the Texas Constitution is applicable to
the City, and limits its maximum ad valorem tax rate to $2.50 per$ I 00 Taxable Assessed Valuation for all City
purposes.

The I&S po1tion of the proposed ad valorem tax rate for 2020-2021 is 0.076097 per $100 of assessed valuation,
or 7.63% of the total adopted tax rate of 0.997340 per $100 valuation.

Debt Series and Funding Commitments

Funding percentage commitments for outstanding debt series are as follows:

Inter-Fund Transter
Debt Service Fund Water & Sewer
Debt Series (I&S Ad Yalorem Community Development Utility Fund (Utility
Corporation Fund (Sales
Tax Levy) Rate Supported)
Tax suooorted)
2007 Ce1tificates of Obligation 100% 0% 0%
2009 Ce1tificates of Obligation 100% 0% 0%
2011 General Obligation Refunding 57% 0% 43%

2014 General Obligation Refunding 0% 100% 0%

Debt Service Approp1dations

Appropriations for the Debt Service Fund are adopted on an annual basis as part of the annual operating budget.

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