APPENDIX D
Debt Management Policy
I.
Purpose:
To outline the guidelines for ensuring an appropriate debt level is maintained while
providing financial support for capital facility needs, and to outline the guidelines for
helping ensure the long-term fiscal health of the City through the development of
standards and conditions under which debt may be issued.
II. Scope:
This policy applies to the management of all City Debt.
III. Policy:
A. The City prepares and adopts a 5-year Capital Improvement Plan, updated
annually, to identify capital project needs, including funding sources, estimated
cost per year, and debt instrument(s) required to finance the plan.
B. Capital projects financed through the issuance of bonds are financed for a period
not to exceed the useful life of the facility or equipment.
C. The City establishes an appropriate mix of bonded debt and pay-as-you-go
financing in the funding of capital projects.
D. Total general obligation bonded debt will not exceed 8% of the assessed value of
taxable property in the City without a referendum, as prescribed by Title 5,
Chapter 21 , Article 1 of the Code of Laws of the State of South Carolina.
E. Long-term debt financing is not used to support current operating expenditures.
F. General obligation debt is not used for enterprise activities.
G. The City does not issue notes to finance operating deficits.
H. Total annual budgeted debt service for general, government supported debt may
not exceed 5% of general government budgeted expenditures.
I. Where feasible, the City develops and utilizes revenues, special fees, or other
self-supporting debt instruments in lieu of general obligation bonds.
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