Fiscal & Budgetary Guidelines
Debt Service Fund
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As an intentional policy , the Town of Garner shall establish and reserve a portion of the annual revenue stream to assist in meeting annual debt service for future capital improvements . Town Council approved the renaming of the program from the " Revenue Savings Plan " to the " Debt Service Fund " in fiscal year 2024-2025 . � This policy applies to the ad valorem taxes revenue category . �
The fund dedicates a portion of the ad valorem tax rate exclusively for purposes defined by this policy . � The dedicated ad valorem tax rate shall be 8.5 cents beginning with fiscal year 2024-25 . �
The dedicated ad valorem tax rate shall be amended to a revenue neutral amount in tax revaluation years . � The dedicated ad valorem tax rate shall be amended at Town Council ’ s discretion . � All revenues generated in this fund shall be separately accounted for and held in reserve . �
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Revenues reserved in this fund will be used to finance major capital facility improvements or infrastructure and may include land acquisition costs associated with those specific major capital improvements . Revenues saved may be used to repair , maintain or reconstruct Town-owned facilities and / or infrastructure .
� Revenues saved may be appropriated to pay for the debt service associated with major capital , facility or infrastructure improvements such as land acquisition associated with major capital improvements or repair , maintain or reconstruct Town-owned facilities and / or infrastructure .
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Savings shall not be utilized to offset annual operating costs , which should come from the regular operating budget . The Debt Service Fund shall not supplant or otherwise negate other approved Fiscal Policy Guidelines . The Debt Service Fund is intended to compliment and support such Fiscal Policy Guidelines .
� The Debt Service Fund policy shall be reviewed within six months following election of the Mayor , thereby implying a review every four years . The policy may also be reviewed during the annual budget process and / or in conjunction with future projects / debt service or as needed any other time at Town Council ’ s discretion .
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The Debt Service Fund will go into effect July 1 , 2024 , and is applicable beginning with the FY 2024-25 budget .
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