FY25 Proposed Budget

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 rate for fiscal year 2025 is $2.5765 per $1,000 in valuation. This is an increase of $0.09804 from the fiscal year 2024 levy rate.

The schedule of annual principal and interest payments as of June 30, 2023 is as follows:

Annual Payments

Principal Outstanding Beginning of Fiscal Year

Fiscal Year

Principal

Interest

Total

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

11,030,000 2,155,890 9,495,000 1,781,740 8,725,000 1,455,428 7,650,000 1,141,553

13,185,890 63,795,000 11,276,740 52,765,000 10,180,428 43,270,000 8,791,553 34,545,000

6,505,000 5,540,000 4,595,000 3,805,000 2,700,000 1,155,000

873,778 7,378,778 655,428 6,195,428 475,978 5,070,978 338,978 4,143,978 214,940 2,914,940 112,500 1,267,500

26,895,000 20,390,000 14,850,000 10,255,000 6,450,000 3,750,000

840,000 865,000 890,000

77,850 52,650 26,700

917,850 2,595,000 917,650 1,755,000

916,700

890,000

Totals at June 30, 2023

63,795,000 9,363,410

73,158,410

Future general obligation bond issues, including 2% for bond issuance costs, are estimated at $9,980,000 in fiscal year 2024, $16,350,000 in fiscal year 2025, and $14,683,000 in fiscal year 2026. Proceeds from bond issues are recorded in the Capital Projects Fund, net of the bond issuance costs.

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