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Commissioner says proposed bond issuance would raise city debt ratio to about 10.41%
Summary
Commissioner Hensley told council the planned bond issuance would bring the city's debt ratio to about 10.41%; he said the city hall lease payments are structured so they likely won't be fully counted against the 10% target until fiscal 2029, and forecast that the ratio could fall below 9% then depending on revenue growth and future issuances.
Councilmember Savigny asked Commissioner Hensley during the Jan. 13 work session about the city's upcoming bond issuance and how it affects the council's 10% debt target. Hensley said the issuance would bring the debt ratio to approximately 10.41% based on current revenue projections and partial-year debt service calculations.
Hensley explained that the lease-payment structure for the planned city hall will not fully be included in the council's 10% debt calculation until construction is complete and payments phase in (he estimated full effect by fiscal year 2029). He added that several debt obligations are scheduled to fall off between now and then, and with continued revenue growth the debt ratio could be under 9% in that future year depending on subsequent bond issuances.
Councilmember Savigny asked how the city hall lease would affect near-term and future calculations; Hensley reiterated the timing and dependencies and cited the sensitivity of the debt ratio to revenue growth and future bond activity. The work session included this informational discussion; no final borrowing authorization occurred in this work session record.
