This policy establishes standards to help determine whether debt is an appropriate option as shifting circumstances arise over time. Borrowing money is a financing tool which should be thoughtfully used and will be considered when some or all of the following conditions exist:
(A) Adequate resources. Future revenues sufficient to cover debt service;
(B) Characteristics. Project represents a one-time investment (e.g. building) rather than ongoing operations (e.g. maintenance of building);
(C) Favorable market conditions. Interest rates and construction costs are reasonable;
(D) Intergenerational equity. Help distribute costs and benefits of capital asset over its useful life;
(E) Length of issuance. Term of financing will not exceed expected life of capital asset;
(F) Mandates. Improvements required by Federal or state authorities;
(G) Options. Other financing has been explored and is not viable for the timely acquisition or completion of a capital asset; and
(H) Within financial limits. Consistent with Federal, state, and local regulations.
(Ord. 19-012, passed 5-2-19)