Page 376 - FY 2021-22 Proposed Budget

CITY DEBT POLICY STATEMENT

In August 1998, the City adopted a formal debt policy, and in April 2005 this debt policy was incorporated into the City's
Financial Policies. The debt policy established guidelines for the structure and management of the City's debt obligations,
including target and ceiling levels for certain debt ratios to be used for financial planning purposes. The policy places
certain restrictions on the types of items that can be financed, limiting financing only to those items with a useful life of six
years or more. In accordance with the policy, the ratio of annual debt payments cannot exceed 15 percent of General
Revenues for voter-approved and non-voter approved debt overall, and cannot exceed six percent of General Revenues
for non-voter approved debt alone. The six percent ceiling for non-voter approved debt may be exceeded only if there is a
guaranteed new revenue stream for the debt payments and the additional debt will not cause the ratio to exceed 7.5
percent, or there is not a guaranteed revenue stream but the six percent ceiling will only be exceeded for one year.

ADOPTED REVISED PROPOSED
RATIO CEILING 2020-21 2020-21 2021-22

Total Direct Debt Service as Percent of General Revenues 15% 5.39% 4.51% 5.04%

Non-Voted Direct Debt Service as Percent of General Revenues 6% 3.58% 2.78% 3.45%

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