General Government Debt
The General Obligation Interest and Sinking Fund accounts for resources to be used to service the city’s long-term debt. Tax revenue is accumulated to pay principal and interest on bonds sold for various improvement projects, such as street and drainage improvements. The amount of the taxes levied is determined by the County Tax Assessor and approved by the City Council. The function of this fund is to retire bonded indebtedness and pay the interest on the indebtedness. Beginning fiscal year 2024, the total outstanding debt supported from ad valorem taxes was $14,020,000. Principal payments will reduce the outstanding bond indebtedness by $675,000 during the year. In September of 2023 $4,390,000 of Certificates of Obligation were issued to construct a new fire station and purchase a new fire truck. An additional $7,805,000 in Certificate of Obligations were also issued in September of 2023 for street infrastructure at Synergy Park. All current outstanding debt will be paid by the year 2043. Statues of the State of Texas limit the maximum amount of ad valorem tax that can be levied by a Home Rule City to no more than $100 of assessed valuation.
Water/Sewer Utility Debt
The Water and Sewer System Interest and Sinking Fund accounts for resources to be used to service the water and sewer utility's long-term debt. This fund accumulates revenues from the Water/Sewer Utility Fund to pay principal and interest on bonds sold for various improvements or expansions to the water distribution and sewer collection systems. Beginning fiscal year 2024, the total outstanding debt supported from water/sewer revenues is $20,335,000. Scheduled principal payments for the current fiscal year will decrease the principal by $915,000. In September of 2023 $7,805,000 in new debt was issued in the form of Certificates of Obligation. The purpose of this bond issue was to make improvements to the City's Water and Wastewater System. All current outstanding debt will be paid by the year 2043.
The Hospital debt will be serviced directly from the Hospital Fund maintained by the City. Lease fees from Kilgore College and the Christus Hospital system are the main revenues sources that will be used to service this debt. In August of 2021 $3,735,000 in Tax Exempt Certificates of Obligation and $4,395,000 in Taxable Certificates of Obligation were issued. The purpose of these bond issues was to construct a new teaching and medical facility for the community. All debt related to the hospital will be paid by the year 2051.