Debt can serve several different purposes, it is useful in matching the costs to acquire or maintain an assets, to the benefits received from the assets; one year's debt payment equals one year's use.
It allows governments to build and acquire assets that the government would not otherwise be able to do. It is also useful as an economic development tool. In other words debt is not something that should necessarily be avoided or eliminated, but rather debt is something that should be used and managed effectively.
Council and staff take managing debt very seriously as indicated with the new debt that was issued for the current street projects. Council has directed staff not to include the yearly debt payment, that is not paid for by special assessments, in the Debt Levy (the debt levy is the part of the overall levy that is paid for by the property taxes) but instead to use Local Government Aid along with State Aid for those payments.
The City has been reducing the outstanding debt in the last few years. From 2016 to 2018 the City has decreased it outstanding debt by 26.91%. The current outstanding debt for the City is $41,284,253.22 (Principal and Interest). After the 2019 Principal and Interest Payments the outstanding debt will be $33,856,379 .
- CITY'S YEARLY DEBT PAYMENTS
- CITY OF BIG LAKE DEBT - (P&I) BREAKDOWN - ENTERPRISE AND GENERAL
- PROPERTY TAX LEVY FOR DEBT 2017-2025
- PROPERTY TAX LEVY CHANGE FOR DEBT 2016-2031
- DEBT SUMMARY INFORMATION
- DEBT SCHEDULE AND PROJECTS
- 2019 DEBT SERVICE BUDGET BREAKDOWN
- 2019 BOND PAYMENTS
- 2018 General Obligation Principal Debt Outstanding Chart
- 2018 General Obligation Principal and Interest Debt Outstanding Chart
- Very strong management conditions
- Very strong budgetary flexibility
- Very strong liquidity
- Strong budgetary performance
- Strong institutional framework score
- Adequate economy
- City of Big Lake full bond rating report