FYE 14 Budget prelim - City of Norman

CITY OF NORMANGeneral Government debt is retired with revenues from annual property tax levies unlessspecific revenue from other sources is dedicated, to the extent available, for debt service. The City’sability to repay this debt is judged on the basis of a combination of factors, including legal debtmargin, economic characteristics, governmental organizations, and financial performance. TheCity’s debt capacity is established by Section 26 and 27, Article X of the Oklahoma Constitution.Section 26 limits bonds issued for road or bridge improvements to ten percent (10%) of the netassessed valuation (gross valuation minus homestead) of the City. Section 27 authorizes cities andtowns to issue bonds for utilities, broadly defined as anything other than roads and bridges, used bythe public. Although the amount of bonds issued under this provision is not specifically limited,debt exceeding 30% of the net assessed valuation would generally affect marketability of the bonds.Legal Debt Margin - June 30, 2012Assessed Valuation:Net Assessed Value $770,324,000Section 26 limitation:10% of net assessed value $ 79,032,000Section 27 limitation:30% of net assessed value $237,097,000Debt applicable to limitation:Total general bonded debt $ 43,140,000Less amount available for payment (4,817,000)Total debt applicable to limitation $ 38,323,000Legal debt margin $198,774,000Source: City of Norman, 2012 Comprehensive Annual Financial Report, p. 107FYE 14 BudgetThe Combined Purpose Bonds of 1992 in the amount of $4,340,000 were issued in FYE 93,and $3,600,000 in FYE 95, but will be paid from sales tax revenue dedicated to capitalimprovements. The Norman Utilities Authority Water and Wastewater Division’s revenues servicethe five revenue issues, while the Norman Municipal Authority revenues service the SanitationEquipment Notes and the Recreational Facilities Revenue Bonds. Proposed Revenue Bonds forimprovements to the University North Park Tax Increment Finance District will be issued by theNorman Tax Increment Finance Authority. The following table illustrates the ratio of GeneralGovernment debt service to total General Government expenditures. On March 29, 2005, the votersapproved 4 out of 5 General Obligation Bond propositions totaling $31,830,000. The moneys arebeing used for major street construction projects, citywide pavement reconstruction, Fire Station #3relocation, and a railroad crossing underpass on Robinson Street.ANNUAL BUDGET116