2015_Approved Budget and CIP.pdf

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City of Roseville — 2015 Budget Debt Policy Purpose ❖ To define the role of debt in the City's total financial strategy so as to avoid using debt in a manner that weakens the City's overall financial condition. ❖ To establish limits on the amount of City debt which will allow for manageable debt service costs. ❖ To maintain the best possible Moody's and Standard and Poor's credit rating Policv ❖ The City will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues. The City shall not use debt for the purchase of vehicles and other rolling stock ❖ When the City finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the expected useful life of the project ❖ The City will try to keep the average maturity of general obligation bonds at or below ten years ❖ The City will strive to keep the direct debt per capita and direct debt as a percent of estimated market value at or below the median set out by the credit rating agencies ❖ Total general obligation debt shall not eXCeed two percent of the market value of taxable property as required by State law ❖ The City shall not use debt for current operations ❖ The City will maintain good communications about its financial condition with credit rating agencies ❖ The City will follow a policy of full disclosure on every financial report and bond prospectus ❖ Refinancing or bond refunding will only be undertaken when there is significant economic advantage to the City, and when it does not conflict with other fiscal or credit policies ❖ The maintenance of the best possible credit rating shall be a major factor in all financial decisions. For the purposes of issuing debt, bond rating categories shall be used as a means of assessing the City's financial condition. Implementation The debt management section of this approved Budget and Capital Improvement Program demonstrate compliance toward achieving the city's debt policy. 107