Sec. 110.514. - Annual debt affordability analysis.

(a) It is the public policy of this City to encourage fiscal responsibility on matters pertaining to City debt. In an effort to finance essential capital projects for the benefit of residents at favorable interest rates, the City must continue to maintain its excellent credit standing with investors. Authorizations of City debt must take into account the ability of the City to meet its total debt service requirements in light of other demands on the City's fiscal resources. The Council declares that it is the policy of this City to exercise prudence in undertaking the authorization and issuance of debt. (b) The Director of the Finance Department shall conduct a debt affordability analysis each year. Proposed capital projects that require funding by the issuance of additional City debt shall be evaluated on the basis of the analysis to assist the Council in setting priorities among capital projects and related appropriations. (1) The Director of the Finance Department shall annually prepare a baseline debt affordability report, to be presented to the Finance Committee and the City Council standing committee to which matters regarding Audits are referenced on or before May 31 of each year for purposes of providing a framework for the Council to evaluate and establish priorities for bills that propose the authorization of additional City debt during the next budget year. (2) The baseline report shall include, but not be limited to: (i) A listing of City debt outstanding, other debt secured by City revenues, and other contingent debt current through April 30 of such year. (ii) An estimate of revenues available for the next five fiscal years to pay debt service, including general revenues plus any revenues specifically pledged to pay debt service. (iii) An estimate of additional debt issuance for previously authorized debt to be issued under the next five fiscal years for the City's existing borrowing programs. (iv) A current schedule of the annual debt service requirements by bond issue or Banking Fund Issuance, including principal and interest allocation, on the outstanding City debt and an estimate of the annual debt service requirements on the debt included in subparagraph (iii) for each of the next five fiscal years. Such schedules shall not include projected savings from anticipated refinancing but shall be based on current terms and conditions. Assumptions regarding interest rates on variable debt shall be disclosed. (v) An overview of the City's issuer, general obligation, if any, covenant and specific revenue credit ratings. (vi) Identification and calculation of pertinent debt ratios, including, but not limited to, the debt affordability parameters and ratios established by Code. (vii) A comparison of the debt ratios prepared for subparagraph (vi), with the comparable debt ratios for the national average for cities and counties of size and rating comparable to the City. (3) The Director of the Finance Department shall prepare an update of the report set forth above in conjunction with any proposal to issue new City debt including an updated debt affordability report, to be presented to the Finance Committee and the City Council standing committee to which matters regarding Audits are referenced concurrent with the submission of the City's Capital Improvement Plan and Capital Improvement Plan Budget each year, for purposes of providing a framework for the Council to evaluate and establish priorities for bills that propose the authorization of additional City debt during the next budget year. This updated report shall contain the information provided in the baseline report, updated to reflect the impact of the issuance of additional debt on both the debt affordability parameters in the Code as well as the debt service schedules for the next five years. The amount of additional debt used in the analysis shall be the amount proposed in the proposed Capital Improvement Plan Budget and Capital Improvement Plan as well as a schedule depicting the impact on debt service and debt affordability of each $20,000,000 increase or decrease from that proposed up to 50 percent greater than the proposed budget. The schedule shall note breakpoints at which debt affordability criteria must be waived to permit such authorization. (4) Any entity issuing debt secured by City revenues shall provide the information necessary to prepare the debt affordability report. (c) The Debt Management Policy, in accordance with the parameters set forth in 110.516 , Ordinance Code, shall be reviewed and re-adopted by the Council every five years. (d) Failure to comply with this Section shall not affect the validity of any debt or the authorization of such debt. (Ord. 2005-1373-E, § 3; Ord. No. 2011-19-E, § 1; Ord. 2015-450-E , § 1; Ord. 2015-483-E , § 1; Ord. 2025-434-E , § 1) Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.