Title
Budget Snapshot - Debt Overview
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a briefing on an overview of the City’s debt. No action required.
Report
Issue:
Whether to receive a briefing on an overview of the City’s debt.
Staff Contact:
Dean Walz, Fiscal Services Director, 360.753.8465
Presenter(s):
Dean Walz, Fiscal Services Director, Administrative Services Department.
Background and Analysis:
The City can issue two types of debt - General Obligation (G.O.) or Revenue. G.O. debt is paid from general revenues of the City, such as property tax. Revenue debt is paid from revenue for charges to customers, such as utility charges.
The City can issue G.O. debt up to 2.5% of the City’s assessed value for property tax purposes with a vote of the people. Of this amount, 1.5% can be issued by the Council without a vote of the people. As of January 1, 2018, the City’s legal limit of G.O. debt was $167,259,105 of this amount $100,355,463 could be issued without a vote of the people. The amount of debt outstanding on January 1, 2018, was $69,431,172 of which $58,291,172 was issued without a vote of the people. The remaining amount of debt available is $97,827,933. $42,064,291 could be issued without a vote of the people.
Revenue debt outstanding is $31,933,877. This is payable from the revenues of the various water utilities. There is no legal limit for Revenue debt. The practical limit would be based on the amount of revenue that could be collected from customers.
Staff will present the City’s current debt obligations and information for managing future debt.
Neighborhood/Community Interests (if known):
None known.
Options:
Information only.
Financial Impact:
N/A
Attachments:
None