Laserfiche WebLink
qy f <br /> 11 � <br /> infrastructure maintenance and improvements, and vehicle replacement to assure that <br /> current decisions are made respective of future needs and expected economic trends. <br /> 1.5. The City shall pursue a moderate capital improvement program through a careful <br /> balance of moderate debt issuance and substantial pay-as-you-go capital projects. <br /> 1.6. Subject to federal and state law, interest may be capitalized from the date of issuance <br /> of debt obligations through the completion of construction for revenue producing <br /> projects. <br /> 1.7. The City shall not use debt to finance operating needs except in the case of an <br /> extreme financial emergency that is beyond its control or reasonable ability to forecast, <br /> 2. Limitations <br /> 2.1. The City shall seek to limit outstanding general obligation debt to a maximum of 75% <br /> of its statutory debt limit as set out in RCW 39.36.020. <br /> ratio at no less than 2.0. <br /> 2.2. Long-term debt will have a maximum maturity of the earlier of: 1) the estimated useful <br /> life of the projects financed; 2) thirty (30) years; or 3) the final maturity of debt <br /> obligations being refinanced, unless a longer term is recommended by the Budget and <br /> Finance Committee. <br /> 2.3. When appropriate, the City may choose to issue general obligation securities that pay <br /> a rate of interest that varies according to a pre-determined formula or results from a <br /> periodic remarketing of the securities. However, the City will avoid over use of <br /> variable-rate debt due to the potential volatility of such instruments. <br /> 2.3.2.4. The City will not engage in derivative instruments, such as interest rate swaps, due to <br /> the risk associated with those financial products. <br /> 3. Utility Debt <br /> 3.1. The City shall maintain a utility rate structure that preserves it revenue debt coverage ratio <br /> at no less than 2,0. <br /> 3.2. The City shall maintain an operating cash reserve balance in Utility Fund 401 of no less <br /> than 90 days of operating expenses, plus annual debt service requirements. <br /> 3,3. The City shall maintain a minimum capital cash balance in its construction fund equal to <br /> the six-year avgerage of renewal and replacement perrojects for each Utility function. 1 <br /> This average shall be based on annual depreciation for each Utility function. <br /> 3.4. The City will emphasize level debt service structures and avoid issuing variable rate <br /> instruments for Utility debt to maintain a predictable and manageable basis for long-term <br /> capital and utility rate planning <br /> 3.5. <br /> 3.4.Bond Issues <br /> 8 <br />