Self-supporting debt from the electric, water, and wastewater utilities continue to absorb a sizeable amount of the city's tax-supported debt, thereby substantially reducing the impact on the resource base.
And how should any
self-supporting debt be addressed?
self-supporting debt bonds at a value of USD 400 million for the benefit of
debt principal maturing each year, net of
self-supporting debt (i.e.
Net direct debt (sometimes called net bonded debt) excludes sinking fund accumulations and
self-supporting debt. For the county, GFOA calculated net direct debt as the sum of all general obligation bonds and notes outstanding, less the year-end balance of the debt service fund.
Direct debt, including the current issuance and net of
self-supporting debt, comprises about 36% of liabilities.
When practical, the city will develop, authorize, and issue revenue, special fee, or other
self-supporting debt instruments instead of general obligation bonds.
The town's long-term liability burden is approximately 6% of personal income including the current issuance and excluding
self-supporting debt from this issuance and outstanding debt.
When
self-supporting debt is excluded, Washington County is closer to the average ratios for the Maryland peer group (see Exhibit 4, for example).
Specifically, the refinement involves the netting out of substantial
self-supporting debt for the district's largest overlapping debt issuer - the City of Lubbock.
Overall net debt excludes
self-supporting debt that is unlikely to be paid from the tax base itself because it has its own revenue stream (i.e., from water and sewer fees or other self-supporting enterprise earnings).
Risks around the expected growth of
self-supporting debt could pose potential rating pressure, in the event that capital projects require general government support.
