Page 272 - Watauga FY21 Budget
P. 272
DEBT SERVICE
The fund is accounted for on the modified accrual basis of accounting. Revenues are
recorded when available and measurable, and expenditures are recorded when the
liability is incurred.
Debt Management
The existing debt payment schedule was level through 2016 until the final payment on
the Series 2005 Refunding certificates was made. At the end of FY2016, approximately
$1.2 million in debt service payments were reduced by the repayment of this debt
issuance. The Certificates of Obligation issuance in FY2017 resulted in approximately
$500,000 debt service, bringing the annual debt service payment to approximately $1.3
million annually. The 2019 Certificates of Obligation Issuance to fund additional water
and sewer projects debt service payments began in FY2020 and through FY2021 debt
service payments total $1.6 million annually. Payments will be steady at $1.8 million
over the next several years.
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