FY25 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 2024 revised is projected to be $6,888,310 which is a decrease of $364,211 or 5.0%. 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 2025 is estimated to be $6,651,370 which is a decrease of $236,940 or 3.44% from fiscal year 2024. This decrease is primarily from principal and interest payments that are being repaid from fund balance.

Long-term Projections:

The debt service levy rate increased for fiscal year 2025 and is projected to stay flat over the following four 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 2026 due to an increase in amount of bonds issue. This will cause the debt service expenditures to rise over the coming years. Little taxable growth projected for fiscal year 2026 in the property tax revenues 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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