Page 41 - WestworthVillageFY26AdoptedBudget

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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 certificates 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
BUDGET Projected Projected Projected Projected
2026 2027 2028 2029 2030
REVENUE
Interest Revenue $ - $ - $ - $ - $ -
Ad Valorem Tax $ 891,020 $ 895,240 $ 898,532 $ 895,844 $ 902,078
Misc $ 135,289 $ 135,087 $ 136,204 $ 135,679 $ 136,682
Total Revenue $ 1,026,309 $ 1,030,327 $ 1,034,736 $ 1,031,523 $ 1,038,760

EXPENSE
Debt Service $ 893,020 $ 897,240 $ 900,532 $ 897,844 $ 904,078
Total Expenses $ 893,020 $ 897,240 $ 900,532 $ 897,844 $ 904,078

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 2025 FY 2026
Goal Indicator FY 2022 FY 2023 FY 2024
Projection Budget
1 Tax Supported Debt Per Capita $296 $279 $290 $289 $288
2 Reserves to Debt (EOY) 44% 43% 40% 58% 59%

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