04-98 Debt Policy Statement - Laserfiche WebLink

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Debt Management Policies · Revenues committed to fund capital projects To minimize the need for issuing debt, the City will commit 100% of property taxes raised within the inside 10 mill limitation, to capital. The City will also transfer excess proceeds from property tax levies. These revenues will be used to fi,md annual capital projects, as well as to meet debt service requirements and pay down on outstanding debt. · Enhance year-to-year financial stability The City will prepare armually a five year projection of revenues and expenditures in order to enhance year-to-year financial stability and to better analyze the need to issue debt. Included with the projections will be a determination as to whether the City should modify the portion of general fund revenues dedicated to financing capital improvements. · Annual preparation of CIP The City will produce a five year capital improvement plan and update the plan annually. The plan will remain flexible to permit changes in project priorities. Debt will be issued in accordance with CIP as necessary. · Credit rating The City will work to maintain and improve its "Aa" long-term debt credit rating from Moody's Investors Service, provided this effort is consistent with good fiscal management policies. City does not currently believe it is cost effective to pursue ratings fi.om additional agencies, but will continue to monitor the market to determine whether additional ratings provide economic benefit. The City will consider having its bond anticipation note issues rated if doing so will provide economic benefit. Debt and financial ratio goals Consistent with the objective to receive and maintain the highest possible long-term debt credit rating, the City has adopted the following goals for the key financial ratios listed below: · Net Direct Debt Per Capita* · Net Debt as % of E.F.V.** (E.F.V.=A.V./.35) · Overall Net Direct of Per Capita · Debt Burden (Overall Net Direct Debt/E.F.V.) · Unreserved General Fund Cash Balance as % of General Fund Expenditures*** · Unreserved General Fund Cash Balance as % of General Fund Revenues*** City of City of Lakewood Goal Moody's Lakewood Minimum Maximum Median 1/98 $436 N/A $558 $745 .25% N/A t.6% 1.6% $647 N/A $698 $1,314 1.86% N/A 2.0% 3.3% 9.68% 5.00% 15.00% N.A. 9.29% 5.00% 15.00% N.A. * - Based on population of 59,718, ** - E.F.V.= Effective Full Valuation, *** - Cash basis as of 12/31/97 The City will closely monitor these ratios and include a year-by-year trend analysis of these ratios in its annual comprehensive annual financial report (CAFR). City of Lakewood, Ohio - Debt Policies Page 3