Debt service is the annual cost of paying principal, interest, and related issue costs on certain county borrowing.
It appears in the operating budget because the county makes debt payments each year, even when the borrowed money helped pay for capital projects such as buildings, roads, school facilities, or major equipment.
In plain English: the capital budget may include the project, but the yearly bill for borrowing shows up as debt service.
Why It Matters
Debt service uses operating budget room each year. It connects past capital project financing decisions with current annual spending.
Common Misunderstanding
Debt service is not the same thing as the total capital budget. It is the annual repayment cost connected to borrowing and other long-term financing.