The Debt Service Fund, established in 1997, accounts for the repayment of municipal debt. A portion of the property taxes of Northlake is deposited into this account to make annual/semiannual payments on the town's debt principal and interest. While the resources of this fund come primarily from a portion of the Northlake property taxes, funds can also be transferred over from other funds. Legally, the resources in this fund are explicitly dedicated to paying down/off the town's debt. The Town of Northlake has no regulatory debt limit, but all debt issuance is subject to the approval of the Town Council and the Texas Attorney General.
FY 2022 Changes
In 2022 the Town issued $7,100,000 in Certificates of Obligation to construct Phase 2 of the Catherine Branch Sewer Line. During the first year, there is a significant upfront payment to lower the payment in future years. The Town's bond rating increased from AA- to AA by S&P.