Title
Budget Snapshot: Citywide Debt
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a briefing on types of debt and the City's current debt profile.
Report
Issue:
Whether to receive a briefing on types of debt and the City's current debt profile.
Staff Contact:
Joan Lutz, Senior Budget and Finance Manager, 360.753.8760
Presenter(s):
Joan Lutz, Senior Budget and Finance Manager
Background and Analysis:
The City borrows funds through various debt mechanisms to finance capital projects and operational needs. Long-term debt is primarily used for large infrastructure projects such as transportation, utility systems, and major equipment purchases. Short-term debt, on the other hand, covers temporary cash flow deficits or serves as a bridge until long-term financing is secured.
The Financial Management policy outlines key objectives to ensure responsible debt management. These objectives include maintaining strong creditworthiness, securing the lowest borrowing costs, controlling capital spending, avoiding excessive debt service burdens while maintaining investor confidence. The ability to meet these objectives ensures financial stability and continues access to funding sources.
We will discuss the different types of debt instruments, information regarding legal debt limits as well as the city's current debt profile.
Climate Analysis:
No specific climate impacts are identified.
Equity Analysis:
No specific equity impacts are identified.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances and debt management.
Financial Impact:
No specific financial impacts have been identified.
Options:
1. receive a briefing on types of debt and the City's current debt profile.
2. Do not receive a briefing on types of debt and the City's current debt profile.
3. Receive a briefing at another time.
Attachments:
None
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