§ 2-505. Sound financing procedures.

When the city utilizes debt financing, the following will occur to ensure that the debt is soundly financed:

(1)

Analysis of the financial impact, such that the issuance of debt keeps within the following guidelines:

a.

Total tax-supported debt as a percentage of total taxable full value will not exceed 1.75 percent; and

b.

Total tax-supported debt service as a percentage of general government operating revenues will not exceed 15 percent.

(2)

Conservatively projecting the revenue sources that the city will use to repay the debt;

(3)

Ensuring that the term of any long-term debt the city incurs shall not exceed the expected useful life of the asset the debt financed; and

(4)

Maintaining a debt service coverage ratio (i.e., for revenue secured debt) that ensures that the revenues pledged for the repayment of the outstanding debt will be adequate to make the required debt service payments.

(Ord. No. 06-11-05, 11-21-2006; Ord. No. 17-03-305 , § 5, 3-20-2017)