Page 124 - CITY OF AZLE, TEXAS

D D De e eb b bt t t S S Se e er r rv v vi i ic c ce e e F F Fu u un n nd d d

The Debt Service Fund is used to account for payment of principal and interest on the
City’s General Obligation Bonds and Certificates of Obligation. An ad valorem tax is
levied and allocated annually to the debt service in amounts sufficient to service the
debt payments.

The fund is accounted for on a modified accrual basis of accounting. Revenues are
recorded when available and measurable. Expenditures are recorded when the liability
is incurred.

The City charter does not establish any legal debt limits for the City of Azle. Under the
provisions of state law, the maximum tax rate is limited to $2.50 per $100 assessed
valuation. The City’s proposed rate of $0.5688744 (including $0.0466712 for debt
service) is $1.9311256 below the state maximum rate.

City of Azle FY 2023-2024 Budget 113