Page 98 - CityofKennedaleFY26AdoptedBudget

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
$1,291,552 in unassigned fund balance, primarily due to property tax revenues being more than
what was needed to pay debt service requirements in prior years. $500,000 of that balance has
been designated for use in FY26. This budget increases the Interest and Sinking portion of Ad
Valorem taxes by $.016200 per $100 valuation.

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 bond rating was raised to ‘AA’ from ‘AA-’ by S&P Global Ratings on
December 12, 2024.

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 $2,729,971.50
has been programed into the total expenditure budget for Fund 02 Debt Service Fund. The
$1,102,028.76 for Fund 10 and $175,593.90 for EDC Fund 15, are shown later in the book with
the expenditures for those funds.

Debt Service Requirements -- 2026 Adopted Budget
Fund 02 Debt
Service Fund Fund 15 Fund 02 Debt Fund 15
(I&S Ad Fund 10 Economic Service Fund (I&S Economic
Valorem Tax Water Develop Ad Valorem Tax Fund 10 Water Development 2026 Principal 2026 Interest
Debt Instruments Levy) Sewer Fund Corp Levy) Sewer Fund Corporation $ $
$2,900,000 Comb Tax & Rev C/O Series 2007 100% 212,710.00 200,000.00 12,710.00
$1,200,000 Sales Tax Rev Bonds Taxable Series 2007 100% 114,247.50 100,000.00 14,247.50
$3,720,000 GO Refunding Bond Series 2016 100% 399,901.75 385,000.00 14,901.75
$2,000,000 Tax Notes Series 2019 100% 398,752.50 395,000.00 3,752.50
$1,260,000 GO Refunding Bonds Series 2020 100% 136,435.25 125,000.00 11,435.25
$1,540,000 GO Refunding Bonds Series 2020A 100% 165,644.50 155,000.00 10,644.50
$5,735,000 Comb Tax and Rev C/O Series 2021 100% 378,950.00 265,000.00 113,950.00
$1,700,000 Texas Leverage Fund Original 3.25% Interest Rate 100% 61,346.40 58,925.18 2,421.22
$17,065,000 Comb Tax and Revenue C/O Series 2023 86% 889,318.76 250,000.00 639,318.76
$17,065,000 Comb Tax and Revenue C/O Series 2023 14% 180,125.00 80,000.00 100,125.00
$2,980,000 General Obligation Bonds Series 2024 100% 218,800.00 95,000.00 123,800.00
$10,810,000 Comb Tax and Revenue C/O Series 2024 100% 851,362.50 410,000.00 441,362.50
Total Debt Service by Year 2,729,971.50 1,102,028.76 175,593.90 2,518,925.18 1,488,668.98

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