Page 14 - 2021 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, 2021 Activities Activities

Direct Placements
Private Placement $649,000 $ -
Capital Leases - 7,120,146
Other Debt
At year-end, the City’s governmental activities had
Lease revenue bonds 26,682,981 48,075,413
$140.8 million in bonds, certificates of participation, Certificates of participation 19,830,000 -
compensated absences, Pension and Other Post- Compensated absences 6,762,735 284,022
Net Pension and OPEB liability 84,170,126 2,468,815
Employment Benefits (OPEB) liability and self-insurance
Self insurance claims and judgments 2,661,000 -
claims and judgments. FY 20/21 is the fifth year of
$140,755,842 $57,948,396
recognizing OPEB liability as a result of implementing
GASB 75 in fiscal year 16/17.

In September 2021 the City’s credit rating was upgraded
from A+ to AA- by Standard & Poor’s. A key factor in
achieving and maintaining the strong rating is the
action of City Council and the City Manager to balance
the City’s General Fund budget.
DEBT PER CAPITA

For more information on the City’s debt program, visit FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21
the Investor Relations page on the City’s website. $600

$400
why does the MILLIONS $200 $439$422 $518 $500 $489

CITY BORROW $0

Local governments issue bonds to pay for large,
expensive, and long-lived capital projects, including
roads and electric utilities. Without issuing debt, these
important infrastructure needs would be unmet. While
local governments can sometimes pay for capital
investments with current revenues, borrowing allows
them to spread the costs across multiple generations
due to their long-term benefit.

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