Page 114 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET

debt service fund

The Debt Service Fund, also known as the General Obligation Interest and Sinking Fund,
was established by ordinance to provide for the payment of general obligation bond principal
and interest as they come due. The property tax rate is required to be annually computed
and levied to provide the funding necessary to pay principal and interest. This fund is also
used to provide for the payment of fiscal agent fees. The General Obligation debt is
financed by property taxes and interest earned on investments. Of the proposed $0.625159
tax rate, the amount needed to fund the 2021-2022 debt payment will be $0.108365. Debt
issuance finances the City's purchase of land and the construction and reconstruction of
buildings, street and drainage facilities and other infrastructure.

Every year the City's finance staff reviews market conditions and evaluates opportunities to
refund, or refinance, existing debt to achieve savings. Refunding opportunities are contingent
upon current rates and demand for municipal bonds. The last seven refunding bonds have
saved the City over $6.7 million dollars in interest costs across all bond funds. The
savings are achieved through taking advantage of lower interest rates in the municipal bond
market, the City of Hurst will not pursue refundings that extend the original maturity date of the
bonds.

EST. BEGINNING FUND BALANCE 10/1/21 $388,928

REVENUES

CURRENT COLLECTIONS 3,880,025
DELINQUENT COLLECTIONS 10,000
INTEREST EARNINGS 10,000

TOTAL REVENUES $3,900,025

COLLECTION & TAX FREEZE ALLOWANCE ($319,200)

TOTAL FUNDS AVAILABLE $3,969,753

EXPENDITURES

DEBT SERVICE $3,619,015

EST.FUND BALANCE 9/30/22 $350,738

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