FY23 FULL BUDGET REPORT ADOPTED

c) Rationalizes the decision-making process d) Identifies objectives for staff to implement e) Demonstrates a commitment to long-term planning objectives f) Regarded as a positive by the rating agencies in reviewing credit quality

It is the policy of the Town Council:

a) Periodically approve the issuance of Debt Obligations on behalf of the Town to finance the construction or acquisition of infrastructure & other assets for the purpose of meeting its governmental obligations to its residents b) Approve the issuance of Debt Obligations to refund outstanding debt when indicated by market conditions or management considerations c) Debt obligations are issued & administered in such a manner as to ensure & sustain the long-term financial integrity of the Town, achieve the highest possible credit rating, preserve & enhance the quality of life, & the safety & welfare of its citizens Debt issuance will not be used to finance current operations or normal maintenance. The Town will strive to maintain its annual tax-supported debt service costs at a level no greater than fifteen percent (15%) of the governmental expenditures (with governmental expenditures defined as ongoing governmental expenditures less capital outlay). Payout of aggregate outstanding tax-supported debt principal shall be no less than 55% repaid in 10 years. The tax-supported debt of the Town will not exceed two (2%) percent of the assessed valuation of the taxable property of the Town. In the event that the Town anticipates exceeding the policy requirements stated above, Town staff may request an exception fromTown Council setting forth the reason and need for the exception and the length of time estimated to achieve compliance. The types of debt currently used by the Town of Morrisville include general obligation bonds and installment purchase agreements. The Town may pursue other methods of financing based upon the direction of the TownManager and approval of the Town Council. The Town will only use debt instruments, which are approved for local government. The Town will comply with standards of the Government Finance Officers Association for financial reporting and budget presentation and the disclosure requirements of the Securities and Exchange Commission. Expenditures Policy The purpose of the Town’s Expenditure Policy is to provide guidelines to ensure that funds are used in a responsible and appropriate manner. Whenever possible, the Town will first attempt to fund capital projects with grants, reserves, other services or developer contributions.

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