FY2023 Adopted Operating and Capital Budget

FY2023 Adopted Budget Fund Budgets

Debt

Debt Legal Debt Margin

The County s legal debt limit is established in the County s charter. In May of 2019, a charter review commission was established and County staff recommended that the debt limit be reduced from 5% to 3% for real property and 15% to 9% for personal property. This recommendation was carried and put before the registered voters of the County. The ballot question passed in November 2020 with 76.7% voting FOR the amendment. Charter (before th e amendment) 508 . Borrowing Limitations (a) Except as otherwis e provide d b y Stat e law , the aggregat e amount of bonds and other evidences of indebtedness outstandin g at any on e time that pledg e the full fait h and credit of the Count y may not excee d a total of fiv e percent of the assessabl e basis of real propert y of the County and fifteen percent of the County's assessable basi s of personal property an d operating real property describe d in § 8 109(c ) of the Tax Property Article . (b) Except as may otherwis e be provided b y Stat e law , th e following may not b e computed or applied in establishin g th e debt limitations provided in this section: (1 ) Tax anticipation notes or othe r evidences of indebtedness having a maturity not in excess of 12 months (2 ) Bonds or other evidences of indebtedness issued or guarantee d b y th e Count y payable primarily or exclusively fro m taxe s levied in or on , or other revenues of , special taxin g area s or community development authorities an d (3 ) Bonds or other evidences of indebtedness issued for self liquidating and other projects payable primarily o r exclusivel y fro m th e proceeds of assessment s or charges for special benefits o r services.

Actual Projected Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 in 000's

Debt Limitation

1,053,159 1,073,118 1,130,161 1,184,269 1,241,382 1,304,501

1,370,626

1,439,758

Total Debt Applicable to Limit

609,149 444,010

730,500 342,618

837,600 292,561

891,100 293,169

899,800 341,582

911,700 392,801

903,000 467,626

966,900 472,858

Legal Debt Margin

Total Net Debt Applicable to the limit as a % of debt limit

57.8% 68.1% 74.1% 75.2% 72.5% 69.9% 65.9% 67.2%

Debt Affordability Limits Debt affordability limits have been established for several decades and in 2016 a study was commissioned to review the standards and make recommendations for changes. Here are the limits that are in place today: 9 General Fund G.O. debt service, as a percentage of General Fund revenue, should be limited to 9.0% 9 General Fund debt, as a percent of assessed valuation, should be limited to 2.0% 9 General Fund debt, as a percent of General Fund Revenue, should be limited to 80.0% 9 Total G.O. debt service, as a percent of General Fund Revenue, should be limited to 17.2% The Capital Improvement Program (CIP) uses these limits, in addition to the legal debt limit, in establishing the capital projects to be funded, when to be funded, and to establish the funding source.

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