25LINKBUDGET(FULL) - Flipbook - Page 92
City Of Plymouth 2024 / 2025 Budget
City of Plymouth
Debt Management Policy
The following debt management policy should be used to provide the general framework for
planning and reviewing debt proposals. The City Commission recognizes there are no absolute
rules or easy formulas that can substitute for a thorough review of all information affecting the City's
debt position. Debt decisions should be the result of deliberative consideration of all factors
involved.
1.
General Debt Policy
1.1
The city shall seek to maintain and, if possible, to improve its current AA bond rating
so borrowing costs are minimized and access to credit is preserved. It is imperative
that the city demonstrates to rating agencies, investment bankers, creditors, and
taxpayers that city officials are following a prescribed financial plan. The city will
follow a policy of full disclosure by communicating with bond rating agencies to
inform them of the city's financial condition.
1.2
The city recognizes that it is of the utmost importance that elected and appointed city
officials, and all others associated with the issuance of city debt, not only avoid the
reality of a conflict of interest, but the appearance thereof as well. City officials must
conduct themselves in a manner consistent with the best interests of the city and
taxpayers. Elected and appointed city officials should avoid even the appearance of
linkages between politics and public finance that can erode the confidence of
taxpayers, ratepayers, and voters. This includes avoiding gratuities, and political
contributions of more than nominal value from service providers and the disclosure
of all possible conflicts of interest shall be provided in writing and filed with the City
Clerk.
1.3
Bonds will be sold on a competitive basis unless it is in the best interest of the city to
conduct a negotiated sale. Competitive sales will be the preferred method.
Negotiated sales may occur when selling bonds for a defeasance of existing debt, for
current or advanced refunding of debt, or for other appropriate reasons.
2. Taxpayer Equity
2.1
The City of Plymouth’s property taxpayers and residents who benefit from projects
financed by bonds should be the source of the related debt service funding. This
principle of taxpayer equity should be a primary consideration in determining the
type of projects selected and type of bonds used for financing through bonds when
the benefit of the bond fund accrues to a specific group such as the case with special
assessment bonds or economic development bonds. Furthermore, the principle of
taxpayer equity shall be applied for setting rates in determining net revenues for
bond coverage ratios.
3.1
Bond proceeds should be limited to financing the costs of planning, design, land
acquisition, buildings, permanent structures, attached fixtures or equipment, and
movable pieces of equipment, such as fire engines, or other costs as permitted by law.
3. Uses
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