Page 73 - KennedaleFY24AdoptedBudget

OVERVIEW: DEBT SERVICE FUND

The Debt Service Fund pays for Debt that is secured by ad valorem (property) taxes. Property
taxes account for over 99% of the Debt Service Fund revenues, with the remainder coming from
investment income.

As of the preparation of this budget, the Debt Service Fund had amassed approximately $674k
in unassigned fund balance, primarily due to property tax revenues being more than what was
needed to pay debt service requirements in prior years. This budget increases the Interest and
Sinking portion of Ad Valorem taxes by $.06 per $100 valuation, primarily to cover debt issued
in September 2023 for upcoming sewer and street projects.

EXPENSES AND BOND RATING

All expenses from the Debt Service are related payments of principal and interest on debt and related
agent fees.

The City of Kennedale’s AA- bond rating was affirmed by S&P Global Ratings on August 8 2023.
DEBT SERVICE REQUIREMENTS

The City has bond expenditures in three funds – 02 Debt Service, 10 Water/Sewer, and 15 EDC.
The below chart depicts all bond payments for all 3 funds. On the next page, the $1,669,317
has been programed into the total expenditure budget for Fund 02 Debt Service Fund. The
$295,311.95 for Fund 10 and $325,995.78 for EDC Fund 15, are shown later in the book with
the expenditures for those funds. Of note, $821,865 of debt service in Fund 02 will be repaid
from Fund 10 in future years.
Debt Service Requirements -- 2024 Budget
Fund 02 Debt
Service Fund Fund 15 Fund 02 Debt Fund 15
(I&S Ad Fund 10 Economic Service Fund (I&S Fund 10 Economic
Valorem Tax Water Develop Ad Valorem Tax Water Sewer Development 2024 Principal $ 2024 Interest $
Debt Instruments Levy) Sewer Fund Corp Levy) Fund Corporation
$4,365,000 GO Refunding Bonds Series 2007 61.25% 132,249.05 129,675.00 2,574.05
$4,365,000 GO Refunding Bonds Series 2007 38.25% 81,919.45 80,325.00 1,594.45
$2,900,000 Comb Tax & Rev C/O Series 2007 100% 213,392.50 185,000.00 28,392.50
$1,200,000 Sales Tax Rev Bonds Taxable Series 2007 100% 111,410.00 85,000.00 26,410.00
$2,735,000 Comb Tax & Rev C/O Series 2007A 100% 219,300.00 215,000.00 4,300.00
$3,720,000 GO Refunding Bond Series 2016 100% 403,416.25 375,000.00 28,416.25
$2,000,000 Tax Notes Series 2019 100% 398,430.00 380,000.00 18,430.00
$1,260,000 GO Refunding Bonds Series 2020 100% 141,260.25 125,000.00 16,260.25
$1,540,000 GO Refunding Bonds Series 2020A 100% 164,335.00 150,000.00 14,335.00
$5,735,000 Comb Tax and Rev C/O Series 2021 100% 317,550.00 185,000.00 132,550.00
$1,700,000 Texas Leverage Fund Original 3.25% Interest Rate 100% 73,285.53 61,669.80 11,615.73
$17,065,000 Comb Tax and Revenue C/O Series 2023 100% 930,943.76 170,000.00 760,943.76
Total Debt Service by Year 2,566,224.06 295,311.95 325,955.78 2,141,669.80 1,045,821.99

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