Page 80 - CityofForestHillFY26Budget

CITY OF FOREST HILL

Debt Service Fund Overview

The Debt Service Fund (Interest and Sinking Fund, or I&S) was established for the purpose of servicing
the City’s general obligation debt. Revenue sources for the fund include the interest and sinking (I&S)
portion of the annual ad valorem tax levy, tax collections penalties and interest, interest earnings, and
inter-fund transfers. Debt service payments are forwarded to the designated paying agent bank as semi-
annual principal and interest requirements come due for each debt issue.

As of the end of fiscal year 2024, the City had accumulated fund balance in the amount of $1,033,777
from collections in prior years for Interest & Sinking. The city has eliminated the I&S tax rate and plans
to use the fund balance to pay the remaining debt.

Interest & Sinking Tax Rate

Fund 30 Debt Service Revenue CDC Interest Rev Taxes Payments Balance
Ending Fund Balance 09/30/2024 ($1,033,776.62)
FY25 ($167,026.20) ($25,000.00) ($71,201.77) $472,353.46 ($824,651.13)
FY26 ($12,000.00) $303,494.38 ($533,156.75)
FY27 $301,235.75 ($231,921.00)

Ad Valorem Tax Rate and Debt Service Limit

The I&S portion of the proposed ad valorem tax rate for 2025-2026 is $0.0000 per $100 of assessed
valuation, or 0% of the total tax rate of $0.700466 per $100 valuation.

Debt Service & Funding Commitments

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