DEBT SERVICE FUND
North Grove Elementary, September 2014CPurpose:
The main purpose of the Debt Service Fund is to make payments on our long term debt. This accounts for 98% of the expense in the Debt Service fund in 2016. In addition, this fund is used to pay for uncollected textbook rental fees and to pay interest on money we borrow to meet our short-term cash flow needs.
More than 99% of the revenue in this fund comes from property tax and other local taxes.
Property Tax Impact:
There are no limits on the tax rate or levy, but each individual item in the budget for this fund must be approved by the Department of Local Government Finance (DLGF) on the Debt Service Worksheet submitted to the State. The tax rate tends to fluctuate from year to year. The amount of cash balance in this fund is also controlled by a state formula.