Page 14 - 2020 Popular Annual Financial Report

long term

DEBT

Governments, just like businesses and individuals, must finance certain purchases with debt. The key is to match the life of the assets being
purchased, with the term of the debt payments. Accordingly, the City’s debt is predominantly related to long-lived capital assets.

OUTSTANDING DEBT FOR THE Governmental Business Type
YEAR ENDED JUNE 30, 2020 Activities Activities

Direct Placements
Private Placement $954,000 $ -
Capital Leases - 8,089,757
Other Debt
Lease revenue bonds 28,184,628 49,308,523
Certificates of participation 17,782,439 -
Compensated absences 6,578,250 345,427
Net Pension and OPEB liability 78,780,226 2,291,058
Self insurance claims and judgments 2,447,000 -

$134,726,543 $60,034,765

At year-end, the City’s governmental activities had $134.7 million in bonds, certificates of participation, compensated absences, Pension and
Other Post-Employment Benefits (OPEB) liability and self-insurance claims and judgments. FY 19/20 is the fourth year of recognizing OPEB
liability as a result of implementing GASB 75 in fiscal year 16/17.

For more information on the City’s debt program, visit the Investor Relations page on the City’s website.

why does the city borrow

DEBT PER CAPITA
Local governments issue bonds to pay for large, expensive, and
long-lived capital projects, including roads and electric utilities. FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20

Without issuing debt, these important infrastructure needs would $600

be unmet. While local governments can sometimes pay for capital
$400
MILLIONS $454 $439$422 $518 $500
investments with current revenues, borrowing allows them to spread

the costs across multiple generations due to their long term benefit. $200

$0

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