Purpose

 
The debt policies ensure that the Township's debt 1) does not weaken the Township's financial structure; and 2) provide limits on debt to avoid problems in servicing debt. This policy is critical for maintaining the best possible credit rating. 
 

Policy

 
The Township will not use long-term debt for current operations.

The Township will avoid the issuance of short-term debt, such as, Budget, Tax and Revenue Anticipation Notes.

The Township will confine long-term borrowing to capital improvements, equipment or projects that have a life of more than 5 years and cannot be financed from current revenues.

The Township will use special assessments, revenue bonds, and/or any other available self-liquidating debt measures instead of general obligation bonds where and when possible, applicable and practical.

The Township will pay back debt within a period not to exceed the expected life of the project.

The Township will not exceed 2 percent of the market value of taxable property for general obligation debt per state statutes.

The Township will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The Township will comply with Securities Exchange Commission (SEC) reporting requirements.

The Township will follow a policy of full disclosure on financial reports and bond prospectus.

The Township will refinance or call any debt issue when beneficial for future savings.