Page 125 - CITY OF AZLE, TEXAS

DEBT SERVICE FUND – IN BRIEF

Current debt service for outstanding obligations and associated fees is $789,338. This is an
increase of $497 from FY 2022-23. To finance the current debt service obligation, the budget
provides for estimated ad valorem taxes of $718,755, delinquent tax revenue of $4,000,
penalties and interest of $4,000, interest income of $4,000, and $58,583 from cash reserves.
This one-time draw on reserves represents a 41.7% decrease in fund balance. This decrease is
not expected to have a negative impact on City operations.

Outstanding debt obligations for the City as of October 1, 2023 funded by ad valorem taxes are
$10,790,000, which is a decrease of $540,000 from the total outstanding debt obligations for the
previous year. This decrease is attributable to the normal annual retirement of debt. The total
amount of debt secured by ad valorem taxes is $17,820,000, however, $7,030,000 of that debt
is accounted for in the Utility Fund.

The ad valorem tax rate for the interest and sinking fund is $0.0466712 per $100 valuation,
which is a decrease of $0.0072768 from the 2022 interest and sinking tax rate.

City of Azle FY 2023-2024 Budget 114