Review Process for Financing Capital Projects (BF-17, Rev. 0)DEPARTMENT:
SUBJECT:
REVISION:
APPROVED BY:
PURPOSE
CITY OF DELRAY BEACH
ADMINISTRATIVE POLICIES AND PR OCEDURES
Finance
Review Process for
Financing of Capital Projects
POLICY NUMBER: BF-17
SUPERSEDES: N/A
EFFECTIVE DATE:
Terrence R. Moore, ICMA-CM, City Manager
The purpose of this policy is to provide a review process for the financing of capital projects in conjunction
with the City's Comprehensive Plan.
POLICY
A.Prior to the issuance of any new debt, the City should review and determine that every effort has
been made to comply with the following items:
1.The amount of debt service for General Obligation and Special Revenue debt for special services
shall not exceed 20% of General Fund revenues.
2.Wherever possible, the City will use Revenue, Self-Supporting or Special Assessment Bonds
instead of General Obligation Bonds.
3.The amount of overall net debt attributable to the General Fund shall not exceed an amount equal
to $ 1, 200 per capita.
4.The length of a Bond Issue shall relate to the useful life of the projects which it is financing.
5.Each proposed borrowing shall analyze the impact of the future debt service upon projections of
operating revenues and expenditures and the City Commission must make a finding that the impact
will not diminish the City' s ability to continue to provide services.
6.Long-term borrowing shall be used only for capital projects listed in the Capital Project Schedule
of the Capital Improvement Element of the Comprehensive Plan.
It should be so noted that these are general guidelines with which the City should attempt to comply;
however, special consideration for deviations and waivers in the above policy should be by special funding
by the City Commission so that the City may proceed with the financing which may be deemed appropriate
which are outside the above stated guidelines.
10/27/21