25LINKBUDGET(FULL) - Flipbook - Page 94
City Of Plymouth 2024 / 2025 Budget
- Evidences of industrial decline
- Trend of the economy
4.2
The city may use the services of qualified internal staff and outside advisors to assist
in the analysis, evaluation, and decision process, including bond counsel and financial
advisors. Recognizing the importance and value to the city's creditworthiness and
marketability of the city's bonds, this policy is intended to ensure that potential debt
complies with all laws and regulations, as well as sound financial principles.
5. Debt Planning
5.1
Unlimited-tax general obligation bond borrowing should be planned and the details
of the plan should be included in the City's Capital Improvement Plan.
5.2
Unlimited-tax general obligation bond issues should be included in at least two
Capital Improvement Plans preceding the year of the bond sale. The first inclusion
should contain a general description of the project, its timing, and financial limits;
subsequent inclusions should become increasingly specific.
6. Communication and Disclosure
6.1
Significant financial reports affecting or commenting on the City will be forwarded to
the rating agencies. Each bond prospectus will follow the disclosure guidelines of the
Government Finance Officers Association of the U.S. & Canada.
6.2
The city should attempt to develop coordinated communication processes concerning
collective plans for future debt issues with all other jurisdictions with which it shares
a common property tax base. Reciprocally, shared information on debt plans
including amounts, purposes, timing, and types of debt would aid each jurisdiction in
its debt planning decisions.
7. Unlimited-Tax General Obligation (UTGO or GO) Bonds
7.1
Every project proposed for financing through general obligation debt should be
accompanied by a full analysis of the future operating and maintenance costs
associated with the project.
7.2
Generally, bonds cannot be issued for a longer maturity schedule than a
conservative estimate of the useful life of the asset to be financed. The city will attempt
to keep the average maturity of general obligation bonds at or below 20 years. The
city will limit the total of its general obligation debt to 10% of the city's assessed value.
7.3
Whenever possible, the city will finance capital projects by using self-supporting
bonds issued under Act 34 of 2001. Revenue bonds may be used because they assure
the greatest degree of equity because those who benefit from a project and those who
pay for a project are most closely matched.
8. Limited Tax General Obligation (LTGO) Debt
8.1
Limited tax general obligation bonds should be considered only when constraints
preclude the practice of voter approved general obligation bonds. As a precondition
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