Debt Service Fund

FY 2024 ANNUAL BUDGET

The Debt Service Fund accounts for the payment of principal and interest on the current portion of general obligation long-term debt and the accumulation of resources for future payments. General obligation bond issues are backed by the full faith and credit of the City and are repaid through resources of the particular fund. Transfers from the General Fund, Library and Health are recorded under “Other Financing Sources”. Funding is derived from property tax and special assessment collections.


The City of Eau Claire has three types of debt issues:


1. General Obligation Bonds & Notes are issued for capital construction projects and are backed by the full faith and credit of the City.


  • Total outstanding debt as of 12/31/2023: $187,450,000

2. Tax Incremental Bonds (General Obligation debt) are issued to finance TIF District improvements in the TIF project plans. Tax Incremental Bonds are paid by segregated property taxes, but are ultimately backed by the full faith and credit of the City if incremental taxes are inadequate to meet payments.


  • Total outstanding debt as of 12/31/2023: $39,770,000

3. Revenue Bonds are issued by the Water and Sewer Utilities for capital construction projects and are backed by user fees generated from operations in the enterprise.


  • Total outstanding debt as of 12/31/2023: $17,205,194

Section 67.03(1) of the Wisconsin Statutes provides that the amount of indebtedness of a municipality shall not exceed 5 percent of the equalized valuation of the taxable property in the municipality. The City Council adopted a Debt Policy in September 2014 that limits the amount of outstanding debt to 70% of the State allowable amount.

Debt Service Revenues & Other Financing Sources

Debt Service Expenditures & Other Financing Uses