Debt Service Fund

The Debt Service Fund accounts for the payment of interest and principal on the city's general long-term debt, except when authorized or required to be paid from other funds.

The City issues two main types of bonds:

• General Obligation Bonds - are bonds that are backed by the full faith and credit of the city and the city's ability to tax property.
• Revenue Bonds - are bonds that are backed by the revenues of a specific source. For example the City has issued two sewer revenue bonds. This means that sewer revenues must be sufficient to pay for all operations and repay the debt.

The City is limited to the amount of General Obligation debt that can be issued by the Iowa Constitution. The limit of General Obligation debt is capped at 5% of the 100% valuation of all property located within the City.

The budgeted Debt Service revenues and expenditures for FY 2018 can be viewed here.