Page 127 - CITY OF AZLE, TEXAS

DEBT SERVICE FUND – IN BRIEF

Current debt service for outstanding obligations and associated fees is $1,390,946. This is an
increase of $601,601 from FY 2023-24 due the issuance of $5,740,000 in certificates of
obligation. The purpose of this new issuance is for the reconstruction and expansion of
Dunaway Lane. To finance the current debt service obligation, the budget provides for
estimated ad valorem taxes of $1,369,946, delinquent tax revenue of $4,000, penalties and
interest of $4,000, and interest income of $13,000.

Outstanding debt obligations for the City as of October 1, 2024 funded by ad valorem taxes are
$15,980,000, which is an increase of $5,190,000 from the total outstanding debt obligations for
the previous year. This increase is attributable to the issuance of certificates of obligation in
June 2024 mentioned above. The total amount of debt secured by ad valorem taxes is
$22,050,000, however, $6,070,000 of that debt is accounted for in the Utility Fund.

The ad valorem tax rate for the interest and sinking fund is $0.0816528 per $100 valuation,
which is an increase of $0.0349816 from the Tax Year 2023 interest and sinking tax rate and is
attributable to newly issued certificates of obligation mentioned above.

City of Azle FY 2024-2025 Budget 116