FY27 Proposed Budget

D ebt 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 2027 is $2.54288 per $1,000 in valuation. This is an decrease of $0.11681 from the fiscal year 2026 levy rate.

The schedule of annual principal and interest payments as of June 30, 2025 is as follows:

Annual Payments

Principal Outstanding Beginning of Fiscal Year

Fiscal Year

Principal

Interest

Total

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

11,830,000 2,558,041 9,930,000 2,092,953 8,780,000 1,711,178 7,815,000 1,379,078 6,870,000 1,085,878

14,388,041 65,945,000 12,022,953 54,115,000

10,491,178

44,185,000

9,194,078 35,405,000

7,955,878

27,590,000 20,720,000 14,640,000 9,665,000 6,235,000 3,125,000

6,080,000 4,975,000 3,430,000 3,110,000 2,235,000

835,128 6,915,128 597,340 5,572,340 390,200 3,820,200 250,850 3,360,850 121,150 2,356,150

890,000

26,700

916,700

890,000

Totals at June 30, 2025

65,945,000

11,048,496 76,993,496

Future general obligation bond issues are estimated at $23,305,000 in fiscal year 2026, of which $8,140,000 is refunding the 2016E TIF Revenue Bond, $18,495,000 in fiscal year 2027, and $16,390,600 in fiscal year 2028. Proceeds from bond issues are recorded in the Capital Projects Fund, net of the bond issuance costs.

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