West Point's general fund sends $576,000 a year to cover redevelopment bonds

West Point's general fund has been paying more than half of the annual debt service on bonds issued through the city's community development and renewal agency, the city's audit and budgets show. ^[1][2]

Fiscal 2025

The agency fund took in $222,145 in tax revenue and $7,652 in interest in fiscal 2025. It paid $419,000 of bond principal and $294,952 of interest and fiscal charges. ^[1]

The general fund transferred $576,000 to the agency fund. The agency's fund balance rose by $91,845 to $213,929. ^[1]

The state-filed fiscal 2027 budget shows the same $576,000 general fund transfer to the agency in fiscal 2024 and 2025 actuals and in the fiscal 2026 budgets. ^[2]

The bonds

The audit says the city issued $6,055,000 in revenue bonds through the agency in fiscal 2023. At June 30, 2025, $5,488,000 remained outstanding, at 5.07% interest with final maturity in 2038. ^[1]

The city's fiscal 2026 budget document describes its debt service fund as covering "bonds related to the City Hall" and says, "As of June 30, 2025, the City had no debt." The audit lists $5,620,000 in revenue bonds outstanding on that date. ^[3][1]

Fiscal 2027

The fiscal 2027 final budget sets the general fund's "Transfer Out to CDRA" at $577,000. In the agency's own schedule, the same amount appears as "Interfund Loan," a label also applied to the $576,000 in prior years. ^[2]

The agency's budget lists $220,000 in property tax increment, $542,000 for long-term debt and $255,000 for interest. ^[2]