Master Proposed Book FY2023

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 2022 is projected to be $7,100,334 which is a decrease of $145,022 or 2.0%. 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 2023 is estimated to be $7,088,081 which is a decrease of $12,253 or .17% from fiscal year 2022. This decrease is primarily from principal and interest payments that are being repaid from fund balance. Long-term Projections:

The debt service levy rate is projected to stay flat over the next five years, while property valuations are projected to increase approximately 3% each year except fiscal years 2023 and 2024 which are estimated to have no change. Future debt service expenditures are expected to start to increase in fiscal year 2025 due to the switch to a flat principal repayment schedule from a flat debt payment schedule. This will cause the debt service expenditures to rise before eventually flattening out at a level parallel with the projected revenues. No growth in the property tax revenues in fiscal years 2023 and 2024 have 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. In fiscal year 2027, a large capital program and debt issuance is projected which is planned to do a one-time draw on the Debt Service Fund cash balance in order to intentionally reduce it from its current level.

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