25LINKBUDGET(FULL) - Flipbook - Page 93
City Of Plymouth 2024 / 2025 Budget
Utility revenue bond proceeds may be used to establish a debt service reserve as
allowed by State law. Acceptable uses of bond proceeds can be viewed as items,
which can be capitalized. Non-capital furnishings and supplies will not be financed
from bond proceeds. Refunding bond issues designed to restructure currently
outstanding debt are an acceptable use of bonds proceeds. It is the intent of this
section to restrict the use of bond proceeds, generally, for financing projects which
are capital in nature and not related to operations.
4. Decision Analysis
4.1
Whenever the city is contemplating a possible bond issue, information will be
developed concerning the following four categories commonly used by rating
agencies assessing the city's creditworthiness. The subcategories are representative
of the types of items to be considered. The Finance Director will present this
information to the City Manager:
4.1. a Debt Analysis
- Debt capacity analysis
- Purpose for which debt is issued
- Debt structure
- Debt burden
- Debt history and trends
- Adequacy of debt and capital planning
- Obsolescence of capital plant
4.1.b Financial Analysis
- Stability, diversity, and growth rates of tax or other revenue sources
- Trend in assessed valuation and collections
- Current budget trends
- Appraisal of past revenue and expenditure trends
- History and long-term trends of revenues and expenditures
- Evidences of financial planning
- Adherence to generally accepted accounting principles
- Audit results
- Fund balance status and trends in operating and debt funds
- Financial monitoring systems and capabilities
- Cash flow projections
4.1.c
Governmental and Administrative Analysis
- Government organization structure
- Location of financial responsibilities and degree of control
- Adequacy of basic service provision
- Intergovernmental cooperation/conflict and extent of duplication
- Overall city planning efforts
4.1.d Economic Analysis
- Geographic and location advantages
- Population and demographic characteristics
- Wealth indicators
- Housing characteristics
- Level of new construction
- Types of employment, industry, and occupation
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