Fiscal Year 2019 Budget

162

Fiscal Year 2018/2019 Operating Budget

Debt Service

EXPENDITURES AS % OF TOTAL BUDGET BY FUNCTION

Departments:

The main department under Debt Service consist of the following:

* Debt Service

Debt Service 6%

The Debt Service Fund accounts for the activity servicing general obligation debt, primarily paid for the property taxes. Pursuant to the Iowa Constitution, cities may issue up to 5% of their 100% valuation as General Obligation debt. Any debt issued that has pledged property taxes as the source of repayment is counted against this 5% limitation. Pledging TIF receipts for debt payment or as a tax rebate payment, also counts against this 5% limitation. In addition to issuing debt backed by property taxes, the City may also issue debt backed by future revenues of its business-type activities. These debt issuances do not count against the 5% limitation. The City's revenue debt payments are budgeted within the issuing department's budget.

FY 2019 ANTICIPATED DEBT UTILIZATION

Debt Capacity Utilized 19%

Debt Capacity Remaining 81%