FY26 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 2026 is $2.65969 per $1,000 in valuation. This is an increase of $0.08319 from the fiscal year 2025 levy rate.

The schedule of annual principal and interest payments as of June 30, 2024 is as follows:

Annual Payments

Principal Outstanding Beginning of Fiscal Year

Fiscal Year

Principal

Interest

Total

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

11,495,000 2,277,475 9,630,000 1,835,328 8,555,000 1,476,203 7,410,000 1,163,178

13,772,475 62,905,000 11,465,328 51,410,000 10,031,203 41,780,000 8,573,178 33,225,000

6,445,000 5,500,000 4,710,000 3,605,000 2,060,000 1,740,000

899,578 7,344,578 674,878 6,174,878 492,628 5,202,628 323,340 3,928,340 184,700 2,244,700 113,850 1,853,850

25,815,000 19,370,000 13,870,000 9,160,000 5,555,000 3,495,000

865,000 890,000

52,650 26,700

917,650 1,755,000

916,700

890,000

Totals at June 30, 2024

62,905,000 9,520,508

72,425,508

Future general obligation bond issues are estimated at $14,290,000 in fiscal year 2025, $13,280,000 in fiscal year 2026, and $16,858,000 in fiscal year 2027. Proceeds from bond issues are recorded in the Capital Projects Fund, net of the bond issuance costs.

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