Master Proposed Book FY2023

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 2023 is $2.478 per $1,000 in valuation. There is no change from the fiscal year 2022 levy rate.

The schedule of annual principal and interest payments as of June 30, 2021 is as follows:

Annual Payments

Principal Outstanding Beginning of Fiscal Year

Fiscal Year

Principal

Interest

Total

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

11,220,000 9,770,000 8,640,000 7,580,000 6,810,000 5,735,000 4,590,000 3,625,000 2,680,000 1,885,000

1,956,263 1,622,813 1,324,363 1,069,713 839,150 621,025 449,000 326,400 232,750 171,600 126,150 102,300

13,176,263 11,392,813 9,964,363 8,649,713 7,649,150 6,356,025 5,039,000 3,951,400 2,912,750 2,056,600

66,740,000 55,520,000 45,750,000 37,110,000 29,530,000 22,720,000 16,985,000 12,395,000 8,770,000 6,090,000 4,205,000 3,410,000 2,595,000 1,755,000

795,000 815,000 840,000 865,000 890,000

921,150 917,300 917,850 917,650 916,700

77,850 52,650 26,700

890,000

Totals at June 30, 2021

66,740,000

8,998,725

75,738,725

Future general obligation bond issues, including 2% for bond issuance costs, are estimated at $10,300,000 in fiscal year 2022, $10,300,000 in fiscal year 2023, and $12,450,000 in fiscal year 2024. Proceeds from bond issues are recorded in the Capital Projects Fund, net of the bond issuance costs.

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