FY2022

Bond Rating

The City obtains its General Obligation bond rating from Moody’s Investors Service each time a new bond is issued. The City’s current bond rating is Aaa. Maintaining the City’s Aaa bond is a priority for the City. Fund Balance: The estimated ending fund balance for fiscal year 2021 is projected to be $7,306,229 which is a decrease of $2,047,807 or 21.89%. The projected fund balance decrease is primarily due to the call and retirement of the 2012D tax increment financing revenue bonds. Although, the entire fund balance for the Debt Service Fund is restricted for debt service expenditures, an additional restriction was being shown for funds that were being held as a reserve for the 2012D and 2016E tax increment financing revenue bonds. These reserves will be depleted by the end of fiscal year 2021. Ending fund balance for fiscal year 2022 is estimated to be $7,2 54,275 which is a decrease of $ 51,954 or 0. 71 % from fiscal year 2021. This decrease is primarily from principal and interest payments that are being repaid from fund balance. Long-term Projections:

Future revenues are projected to increase through fiscal year 2027, and the changes in revenue are largely due to increases in the property taxable valuations. The debt service levy rate is projected to stay flat over the next five years, while property valuations are projected to increase approximately 3% each year. Future debt service expenditures are expected to remain relatively flat over the next few years but start to increase in fiscal year 2025 due to the switch to a flat principal repayment schedule from a flat debt payment schedule. This will cause the debt service expenditures to rise before eventually flattening out at a level parallel with the projected revenues.

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