§ 2-576. Categorization of debt.

(a) Self-supporting debt. To be considered self-supporting, a propriety or governmental debt program will:

(1) Be payable exclusively from non-general fund revenues; and

(2) In the case of governmental debt, be secured by a revenue source which has been in effect for at least three (3) years, and would have provided coverage of at least one hundred twenty-five (125) percent of the average annual debt service on such obligations; or if the revenue source has not been in existence for at least three (3) years, be secured by a revenue source that would have provided coverage of at least one hundred twenty-five (125) percent of the average annual debt service on such obligation for at least the last full fiscal year preceding the issuance of such obligations and is projected to provide at least one hundred twenty-five (125) percent debt service coverage for each of the next two years;

(3) In the case of proprietary fund debt or special assessment debt, be secured by a revenue source which would provide a coverage in each fiscal year of at least one hundred twenty-five (125) percent of the annual debt service in such fiscal year.

(4) It is anticipated through financial forecasts that no inter-fund contributions from the general fund, without commission approval or consent, to the specific proprietary or governmental fund will be required to make up an operating short fall.

For purposes of calculating the coverage requirements, historical and projected receipts of a particular revenue source will be adjusted retroactively to the initial date of the calculation period to reflect changes in rates or levies enacted.

(b) Non self-supporting. Includes all debt of the city that does not meet the definition of self supporting debt.

(Ord. No. 2013-03, § 1, 2-5-13)