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1 <br />ebt Policy <br />140 <br />141 <br />142 <br />Purpose <br />143 <br />144 <br />Q <br />To define the role of debt in the City's total financial strategy so as to avoid using debt <br />145 <br />in a mam-ler that weakens the City's overall -financial condition, <br />146 <br />147 <br />L) <br />To establish limits on the amount of City debt which will allow for manageable debt <br />148 <br />service costs, <br />149 <br />150 <br />L) <br />To, maintain the best possible Mood 's and Standard and Poor's credit ratl*Dg <br />151 <br />152 <br />Policj <br />153) <br />154 <br />U <br />The City will confine long-term borroWift(y to caj)ital improven'ients or projects that <br />1.55 <br />cannot be financed from current revenues. 'The City shall not use debt for the purchase <br />1 56 <br />Of vehicles and other rolling stock <br />157 <br />158 <br />ZI <br />When the City finrances. capital projects by issuing bonds, it will pay back the bonds <br />159, <br />within a, period not to exceed the expected useful life of the project <br />160 <br />1611 <br />LJ <br />The City will try to kee p averaci the e maturity of general obligation bonds at or below <br />Z70 <br />1612 <br />teti years <br />11613 <br />164 <br />LJ <br />The City will strive to keep the direct debt per capita and direct debt as a, percent of <br />165 <br />estimated market value at or below the median set out by the credit rating agencies <br />166 <br />167' <br />El <br />Total general obligation debt shall not exceed two percent of the market value of <br />168 <br />taxable property as required by State law <br />1 <br />D <br />The City shall not use debt for current operations <br />171 <br />172 <br />Ll <br />The City will maintain good communications about 'Its financial condition with credit <br />173 <br />rating agencies <br />174 <br />17 <br />i U <br />The City will follow a policy of full disclosure on every financial report and bond <br />176 <br />prospectus, <br />177 <br />178 <br />0 <br />Rt,%financing or bond refunding will only be undertaken when there is significant <br />179 <br />economic advantage to the City, and when it does not conflict with other fiscal or Credit <br />ISO <br />Policies <br />181 <br />182 <br />L3 <br />The miaintenwice of the best possible credit rating shall be a major factor in all financial <br />1,83, <br />decisions. For the purposes of issuing debt, bond rating categories shall be used as a <br />1 84 <br />niewis of assessing the City's financial condition. <br />