Page 366 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

B. Analysis of Debt Issuance and Debt Issuance Alternatives - Staff will explore alternatives to
the issuance of debt for capital acquisitions and construction projects.

These alternatives will include, but not be limited to,
grants- in- aid
use of reserves
use of either current on-going general revenues or one-time revenues
contributions from developers and others
leases
user fees
impact fees

C. Use of Debt Financing - The useful life of the asset or project shall, at a minimum, exceed
the payout schedule of any debt the Town assumes. Debt financing instruments to be
considered by the Town may include:

General obligation bonds - These must be authorized by a vote of the citizens of
Westlake.
Revenue bonds - These bonds generate capital requirements necessary for
continuation or expansion of a service which produces revenue and for which the
asset may reasonable be expected to provide for a revenue stream to fund the debt
service requirement.
Certificates of obligation - These can be authorized by Council approval with debt
service by either general revenues or backed by a specific revenue stream or a
combination of both.
Lease/ purchase agreements - These shall only be used to purchase capital assets that
cannot be financed from either current revenues or fund balance/ retained earnings
and to fund infrastructure improvements and additions.

D. Assumption of Additional Debt - The Town shall not assume more tax-supported general
purpose debt than it retires each year without first conducting an objective analysis as to
the community' s ability to assume and support additional debt service payments.

E. Affordability Targets - The Town shall use an objective multi- year analytical approach to
determine whether it can afford to assume new general purpose debt beyond what it
retires each year. This process shall compare generally accepted standards of
affordability to the current values for the Town. The process shall also examine the direct
costs and benefits of the proposed expenditures. The decision on whether or not to
assume new debt shall be based on these costs and benefits and on the Town' s ability to
afford” new debt as determined by the aforementioned standards. The Town shall strive
to achieve and/ or maintain these standards at a low to moderate classification.

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