FY2022

DEBT SERVICE FUND This fund accounts for annual principal and interest payments due on the City’s general obligation and tax increment revenue bonded debt. Funding is provided by the debt service property tax levy, tax increment financing, and loan repayments. Chapter 384.4 of the Iowa State Code provides legal authority for a city to establish a debt service fund and certify taxes to be levied in the amount necessary to pay for the principal and interest on general obligation bonds issued by the city. The debt service levy for fiscal year 2022 is $2.478 per $1,000 in valuation – this is a reduction of $.10 per $1,000 from the fiscal year 2021 levy.

The schedule of annual principal and interest payments as of June 30, 2020 is as follows:

Principal Outstanding Beginning of Fiscal Year

Annual Payments

Fiscal Year

Principal

Interest

Total

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

12,745,000 10,085,000 8,635,000 7,505,000 6,445,000 5,675,000 4,600,000 3,455,000 2,490,000 1,545,000

1,905,068 1,502,763 1,226,063 984,363 786,463 612,650 451,275 336,000 247,450 187,850 149,400 126,150 102,300

14,650,068 11,587,763 9,861,063 8,489,363 7,231,463 6,287,650 5,051,275 3,791,000 2,737,450 1,732,850

68,160,000 55,415,000 45,330,000 36,695,000 29,190,000 22,745,000 17,070,000 12,470,000 9,015,000 6,525,000 4,980,000 4,205,000 3,410,000 2,595,000 1,755,000

775,000 795,000 815,000 840,000 865,000 890,000

924,400 921,150 917,300 917,850 917,650 916,700

77,850 52,650 26,700

890,000

Totals at June 30, 2020

68,160,000

8,774,993

76,934,993

Future general obligation bond issues, including 2% for bond issuance costs, are estimated at $11,400,000 in fiscal year 2021, $12,400,00 in fiscal year 2022, and $12,100,000 in fiscal year 2023. Proceeds from bond issues are recorded in the Capital Projects Fund, net of the bond issuance costs.

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