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DSB'P POLICISS <br />PURPOSE <br />1. To define the role of debt in the City'e total financial <br />etrategy to avoid ueing debt in a way that weakens other <br />parte of the financial etructure of the City. <br />2. To provide for limita on debt to avoid problems in servicing <br />the debt. <br />3. To maintain the best possible Moodys and Standard and Poors <br />credit rating. <br />POLICY <br />. The City will confine long-term borrowing to capital improve- <br />mente or projects that cannot be financed from current reve- <br />nues. The City ehall not use debt for the purchase of vehi- <br />cles and other rolling stock. <br />. When the City finances capital projects by issuing bonda, it <br />will pay back the bonde within a period not to exceed the <br />expected useful life of the project. <br />. The City wfll try to keep the average maturity of general <br />obligation bonde at or below ten years. <br />. The City will strive to keep the direct debt per capita and <br />direct debt as a percent of estimated market value at or <br />below the median aet out by the credit rating agencies. <br />. Total general obligation debt ehall not exceed 2 percent of <br />the market value of taxable property as called for by State <br />law. <br />. The City ahall not uae long-term debt for current operations. <br />. The City will maintain good communicatione about its finan- <br />cial condition with credit rating agencies. The City will <br />follow a policy of full dieclosure on every financial report <br />and bond proepectus. <br />. Refinancing or bond refunding will only be undertaken when <br />there is significant economic advantage to the City, and when <br />it does not conflict with other fiscal or credit policies. <br />. The maintenance of the beet poesible credit rating shall be a <br />major factor in all financial decisione. <br />� <br />