Page 40 - WestworthVillageFY25ApprovedBudget

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DEBT SERVICE FUND

Debt Service revenue is allocating a portion of the city’s assessed ad valorem tax, along with
transfers from the Water and Hawks Creek Golf Club enterprise funds. The Debt Service fund
makes the annual payment for city-issued debt.

Debt Service expense includes principal and interest payments for city-issued debt. This
includes certificate of obligation and general obligation refunding bonds. In fiscal year 2022,
the city refunded the 2013 certificate of obligation and saved the taxpayers approximately
$30,000 annually. The city continues to contemplate issuing additional debt, as our current
bonded indebtedness matures in future years, to fund drainage infrastructure and street
improvements.

Debt Service Fund Overview
Proposed Proposed Proposed Proposed Proposed
2025 2026 2027 2028 2029
REVENUE
Interest Revenue $ - $ - $ - $ - $ -
Ad Valorem Tax $ 895,543 $ 760,249 $ 891,020 $ 895,240 $ 898,532
Misc $ 135,293 $ 135,357 $ 135,289 $ 135,087 $ 136,204
Total Revenue $ 1,030,836 $ 895,606 $ 1,026,309 $ 1,030,327 $ 1,034,736

EXPENSE
Debt Service $ 897,542 $ 898,170 $ 893,020 $ 897,240 $ 900,532
Total Expenses $ 897,542 $ 898,170 $ 893,020 $ 897,240 $ 900,532

Goals and Objectives:
Goal: Maintain a fiscally conservative approach to financing the needs of the city
1. Objective: Maintain a low tax supported debt per capita
2. Objective: Maintain reserves to 40% of total yearly debt

Performance Indicators:
FY 2024 FY 2025
Goal Indicator FY 2021 FY 2022 FY 2023
Projection Budget
1 Tax Supported Debt Per Capita $306 $307 $290 $289 $289
2 Reserves to Debt (EOY) 44% 44% 43% 40% 32%

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