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City of <br />�� Debt Policy <br />- ���v��, t��� <br />r <br />PUT�OSO <br />C� To define the role of debt in the City's total financial strategy so as to avoid using debt <br />in a way that weakens other parts of the financial structure of the City <br />Cl To provide for limits on debt to avoid potential pitfalls in servicing the debt <br />[� To maintain the best possible Moody's and Standard and Poor's credit rating <br />��Li�� <br />0 The City will confine long-term borrowing to capital improvements or projects that <br />cannot be financed from current revenues. The City shall not use debt for the purchase <br />of vehicles and other rolling stock <br />� When the City finances capital projects by issuing bonds, it will pay back the bonds <br />within a period not to exceed the expected useful life of the project <br />C] The City will try to keep the average maturity of general obligation bonds at or below <br />ten years <br />C� The City will strive to keep the direct debt per capita and direct debt as a percent of <br />estimated market value at or below the median set out by the credit rating agencies <br />❑ Total general obligation debt shall not exceed two percent of the market value of <br />taxable property as called for by State law <br />C� The City shall not use long-term debt for current operations <br />❑ The City will maintain good communications about its financial condition with credit <br />rating agencies <br />� The City will follow a policy of full disclosure on every financial report and bond <br />prospectus <br />❑ Refinancing or bond refunding will only be undertaken when there is significant <br />economic advantage to the City, and when it does not conflict with other fiscal or credit <br />policies <br />� The maintenance of the best possible credit rating shall be a major factor in all financial <br />decisions <br />� <br />