Page 98 - HaltomCityFY25Budget

City Of Haltom City Annual Budget, FY2025 Debt Service Fund

Legal Debt Limit for General Obligation Debt

All taxable properties within the City is subject to the annual assessment, levy, and collection of ad valorem
tax sufficient to provide for the principal and interest principal on City issued General Obligation Bonds.
Article XI, Section 5, of the Texas Constitution is applicable to the City, limiting the maximum ad valorem
tax rate to $2.50 per $100 of assessed property valuation (for all City purposes). Self-supporting debt that
will be repaid by revenues generated through the ongoing activities in the enterprise funds or other non-
governmental funds are not subject to the same legal debt limit. Limits for self-supporting debt are instead
set by the ability of the issuing entity’s city charter, profit and loss considerations, or other governing body
constraints.

The City limits the total annual tax-supported debt service to no more than 25% of total spending. The
property tax supported debt is the equivalent to 17% of total expenditures. The adopted debt service
budget of $8,673,294 includes $7,903,999 of debt supported by property taxes, $769,295 is supported by
the Water & Sewer revenues. For FY2025, the debt services portion of the tax rate is at $0.194624.

The chart below displays the relationship of the City’s adopted total tax rate of $0.580727 in relation to the
legal limit of $2.50. The City’s current tax rate is 23.2% of the legal limit.