Page 323 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

CITY OF HURST
DEBT SERVICE FUND
FOR FISCAL YEAR 2022 – 2023

The Debt Service Fund, also known as 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. General Obligation debt is financed by property taxes and
interest earned on investments. Council adopted a total tax rate of $0.614043 an includes a
portion dedicated to the annual debt service obligations associated with the City’s General
Obligation Debt. The amount needed to fund the 2022-2023 debt service obligations is $0.100290
and referred to as the Interest & Sinking Debt Rate. Debt issuance is used to finance 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. Since 2011 refundings 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 10/1/22 $392,500

REVENUES
CURRENT COLLECTIONS 3,897,407
DELINQUENT COLLECTIONS 10,000
INTEREST EARNINGS 10,000

TOTAL REVENUES $3,917,407

COLLECTION & TAX FREEZE ALLOWANCE ($326,921)

TOTAL FUNDS AVAILABLE $3,982,986

FY 23 DEBT SERVICE $3,634,907

EST.FUND BALANCE 9/30/23 $348,079

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