Coppell City Council Discusses General Fund And Debt Service Fund; City Publishes Draft Proposed Budget

From City of Coppell:

On July 9, the Coppell City Council held a Budget Workshop to discuss the General Fund, the largest fund in the City's budget, and the Debt Service Fund. Further, the City of Coppell published an initial proposed budget on July 10, in accordance with the legislative changes implemented by the State of Texas. The published initial proposed budget fulfills only the legal requirements and is significantly more condensed than previous proposed budgets that have been provided to the public. The initial proposed budget should not be considered a final proposed budget and does not contain the revenues or property tax rate Council will vote on in August. Once the City receives the certified estimated property values from the Appraisal Districts and is able to update the proposed budget and tax rate, a new edition will be publicized in the historic long format for review.

General Fund

The General Fund is the general operating fund for the City. It is used to account for all financial resources except those required to be accounted for in other funds, such as the Water and Sewer Fund or Special Revenue Funds. All general tax revenues and other receipts that are not allocated by law or otherwise restricted to other funds are accounted for in this fund.

The General Fund accounts for the majority of City services, including general government, cultural and recreation, public safety, and public works. Budgeted expenditures include salaries and benefits, supplies, maintenance, services, and capital outlays.

Debt Service Fund

Coppell's Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest, and related costs for general long-term debt paid primarily from taxes levied by the City. Debt – typically in the form of Certificates of Obligation – is issued as needed to provide for infrastructure improvements and projects.

Per the City's Charter and State and Federal law, the City uses debt to finance the construction, acquisition or renovation of infrastructure that will improve the quality of life of residents, as determined by the City Council. The City may also issue bonds to refinance existing debt when there is an opportunity to obtain a better interest rate and decrease interest expense. The City does not issue debt – or use any proceeds from issuing debt – to finance operations or for normal maintenance.

Each year, City staff reviews any outstanding debt to determine whether or not there is an opportunity to refinance the debt at a better rate. By refinancing, the City is able to reduce the amount of its payment on the debt, and this in turn allows the City to use taxpayer funds for other projects.

The City strongly encourages residents to get involved and attend public meetings. Feedback on the full-length proposed budget, which will be available to the public by August 5, is also encouraged.

For more information on the budget, visit coppelltx.gov/budget or to view the draft proposed budget, visit https://en.calameo.com/read/003114634e844268234be.

This press release was produced by City of Coppell. The views expressed here are the author’s own.