FY2024 Proposed Budget

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 2023 is projected to be $6,871,687 which is a decrease of $244,933 or 3.4%. The projected fund balance decrease is primarily due the intentional use of Debt Service Fund cash balance to make debt service payments in order to begin a strategy to reduce fund balance in this fund. Ending fund balance for fiscal year 2024 is estimated to be $6,828,054 which is a decrease of $43,633 or .63% from fiscal year 2023. This decrease is primarily from principal and interest payments that are being repaid from fund balance. Long-term Projections:

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 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. No growth in the property tax revenues in fiscal years 2023 has started to create a slight imbalance in projected revenues and expenditures which may have to be corrected if property tax revenue growth does not change.

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