The city has several sources of revenue that are available or may become available for the repayment of debt, including but not limited to, income tax revenue, enterprise fund revenue, or tax increment revenue. The city will identify a specific stream of revenue intended to support each issuance of debt.
(A) Income tax revenue.
(1) The primary source of revenue to repay debt is income tax revenue. Pursuant to Ordinance No. 17-87, approved by City Council on July 20, 1987, (and the subsequent approval by the voters of Dublin to increase the income tax from 1% to 2%), 25% of the income tax revenue collected will be allocated to the Capital Improvements Tax Fund. Of that amount, the city will allocate 40% to cash fund capital projects. The projects funded by cash will generally be recurring in nature or not have a useful life that meets the criteria of projects to be financed by debt. The remaining 60% will be allocated to retire debt issued for capital projects (see § 35.128, Debt Limitation). Any excess income tax revenues remaining after funding the annual debt service may be used to 'buy down' other capital project costs in order to issue less debt, cash fund capital projects, or accelerate the repayment of outstanding debt, when appropriate.
(2) Examples of projects that may be funded using income tax revenue: roadway improvements; park improvements; public facilities.
(B) Enterprise Fund revenue.
(1) Revenues generated from user fees and other charges within the city's water and sewer systems will be used to pay the debt service on improvements made to the respective systems.
(2) Examples of projects that may be funded using Enterprise Fund revenue: water and sewer projects; projects in which a dedicated enterprise fund has been established.
(C) Tax increment revenue.
(1) The city utilizes tax increment financing (TIF) to fund improvements that benefit the property owners within the respective TIF districts. TIF revenues received within these TIF areas may be used to pay the debt service on the improvements. However, until a stable TIF revenue stream is available, the city will consider the debt service on these projects to be income tax funded, and will be included in the analysis of existing and proposed debt, in terms of determining additional debt capacity, as noted above.
(2) Examples of projects that may be funded using tax increment revenue: roadway improvements; park improvements; improvements benefitting the TIF district.
(D) (Unlimited) property tax revenue.
(1) Certain capital projects may lend themselves to financing through voter supported bond issues. A key benefit to this financing method is the fact that such debt is not counted against the 10-mill bond limit for "unvoted debt". This financing approach may be used for specific voter approved purposes and may be a desirable option for certain projects if debt capacity limits are constraining or for projects that are outside the scope of general operations of the city.
(2) Revenue from a voter approved levy is segregated from all other revenue and available only for the voter approved project and related debt repayment.
(3) To the extent that money is available from the income tax allocation for debt service for payment of the debt charges on voted debt, the amount of the property tax levied to pay the debt service may be reduced or not collected at all. This does not diminish the pledge of the full faith and credit and property taxing powers of the city to the prompt payment of the debt charges on voter approved debt.
(4) Examples of projects that may be funded using (unlimited) property tax revenue: roadway improvements; park improvements; public facilities.
(Ord. 31-16, passed 9-12-16; Am. Ord. 37-19, passed 8-26-19)