Title
An ordinance revising the Debt Management Policy for the City of Mesquite.
Body
Staff has reviewed the current Debt Management Policy approved in 2007 and recommends the following proposed changes:
• Add two parameters for debt management as follows:
o Total tax supported debt shall not exceed 5 percent of Total Assessed Value
o Debt service cost shall not exceed 25 percent of operating revenues
• Change one parameter for debt management regarding the portion of the City’s property tax rate levied for general obligation debt service to not exceed 40 percent of the total tax rate as compared to the current 35 percent parameter
These changes were briefed to the City Council during the January 7, 2019, Pre-Meeting. The “redlined” version along with the final version of the Debt Management Policy have been attached for reference.
Recommended/Desired Action
Staff recommends approval of the ordinance.
Attachment(s)
Ordinance
Redlined Version - Debt Management Policy
Drafter
Debbie Mol
Head of Department
Debbie Mol