Page 14 - 2022 Popular Annual Financial Report

OUTSTANDING DEBT FOR THE Governmental Business Type
YEAR ENDED JUNE 30, 2022 Activities Activities

Direct Placements
Private placement $331,000 $ -
Capital leases - 6,898,177
Other Debt
Lease revenue bonds 25,116,334 47,744,600
Certificates of participation 18,870,000 -
Lease liability $2,252,220 -
Compensated absences 6,302,512 308,327
Net pension and OPEB liability 58,599,800 1,572,211
Self insurance claims and judgments 2,677,000 -
$114,148,866 $56,523,315
long term

DEBT

DEBT PER CAPITA

Governments, just like businesses and individuals, FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22
must finance certain purchases with debt. The key is to
$600
match the life of the assets being purchased, with the
term of the debt payments. Accordingly, the City’s debt
is predominantly related to long-lived capital assets. $400

$422 $518 $500 $489 $473
$200

At year-end, the City’s governmental activities had
$0
$114.1 million in bonds, certificates of participation,
compensated absences, Pension and Other Post-
Employment Benefits (OPEB) liability and self-insurance
claims and judgments. FY 21/22 is the sixth year of why does the
recognizing OPEB liability as a result of implementing
GASB 75 in fiscal year 16/17. CITY BORROW

The City’s credit rating is AA- by Standard & Poor’s. A Local governments issue bonds to pay for large,
key factor in achieving and maintaining the strong expensive, and long-lived capital projects, including
rating is the action of City Council and the City Manager roads and electric utilities. Without issuing debt, these
to balance the City’s General Fund budget. important infrastructure needs would be unmet. While
local governments can sometimes pay for capital
For more information on the City’s debt program, visit investments with current revenues, borrowing allows
the Investor Relations page on the City’s website. them to spread the costs across multiple generations
due to their long-term benefit.

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