FY2022 Adopted Operating and Capital Budget

FY2022 Adopted Budget Fund Budgets

Debt

Debt Legal Debt Margin

7KH &RXQW\¶V OHJDO GHEW OLPLW LV HVWDEOLVKHG LQ WKH &RXQW\¶V FKDUWHU ,Q 0D\ RI , 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. Charte r (befor e the amendment) 508 . Borrowing Limitations (a) Excep t as otherwis e provide d b y Stat e law , th e aggregate amount o f bonds and othe r evidences of indebtedness outstanding a t an y on e tim e tha t pledg e the full faith and credi t of th e Count y ma y not excee d a tota l o f five percen t of the assessable basis of rea l property o f th e County and fiftee n percen t o f th e County' s assessable basis of persona l property an d operatin g rea l property described i n § 8 109(c ) o f the Tax Propert y Article. (b) Excep t as ma y otherwise b e provide d b y Stat e law , th e following ma y not b e compute d or applied i n establishin g th e deb t limitations provided in this section: (1 ) Ta x anticipation notes or other evidence s of indebtedness havin g a maturit y no t in excess of 1 2 months (2 ) Bonds or other evidence s of indebtedness issued or guarantee d by th e County payabl e primaril y or exclusivel y from taxe s levie d i n or on, or other revenue s of, special taxing area s or communit y developmen t authorities and (3 ) Bonds or other evidences o f indebtedness issue d for self liquidating an d other projects payable primarily o r exclusively from the proceeds of assessments or charges for specia l benefits or services.

Actual Projected Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 in '000s 1,597,003 1,004,332 1,061,700 1,106,280 1,152,750 1,201,170 1,341,600 1,304,190 *

Debt Limitation

Total Debt Applicable to Limit

647,564 949,439

636,700 367,632

768,000 293,700

808,200 298,080

812,300 340,450

817,700 383,470

828,700 512,900

887,600 416,590

Legal Debt Margin

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

40.5% 63.4% 72.3% 73.1% 70.5% 68.1% 61.8% 68.1%

* FY2020 was before the amendment passed. All other years are shown at the lower debt limit.

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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