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Criteria I Governments I U.S. Public Finance: U.S. Local Governments General Obligation Ratings:Methodology <br /> And Assumptions <br /> or other events that are foreseeable within our current-year estimate.When such events are likely,the coming year's <br /> cost of these obligations exceeds 25%of general fund revenues, and the government lacks a commitment to <br /> implement a credible plan to finance the obligation,the final liquidity score is capped at'5'.When such events are <br /> likely,the coming year's cost of these obligations exceeds 10%of general fund revenues, and the government lacks a <br /> commitment to implement a credible plan to finance the obligation,the final liquidity score is capped at'4'. Otherwise, <br /> the presence of such obligations worsens the liquidity score by one point.Any such element deemed certain is <br /> included as an expenditure in total cash as a percentage of total governmental funds expenditures. If the event would <br /> result in a higher debt obligation,the criteria also include the item as debt service in the total government cash as a <br /> percentage of total governmental funds debt service measure. For more information on contingent liquidity risks, see <br /> "Contingent Liquidity Risks In U.S. Public Finance Instruments: Methodology And Assumptions",published March 5, <br /> 2012. <br /> I. Debt And Contingent Liabilities Score <br /> 78. The criteria form the initial debt and contingent liabilities score from the combination of two measures:total <br /> governmental funds debt service as a percentage of total governmental funds expenditures and net direct debt as a <br /> percentage of total governmental funds revenue.Debt service as a percentage of expenditures measures the annual <br /> fixed-cost burden that debt places on the government.Debt to revenues measures the total debt burden on the <br /> government's revenue position rather than the annual cost of the debt,which can be manipulated by amortization <br /> structures. Net direct debt is calculated as of the date of our analysis,including any debt issuance we are currently <br /> rating. Debt to expenditures is measured similarly,recognizing any near-term changes due to the government's debt <br /> structure.Table 14 details the scoring for the debt and contingent liabilities score. For more information on debt <br /> measurement,see"Debt Statement Analysis",published Aug. 22, 2006. <br /> WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 12,2013 28 <br /> 1190266 1300881696 <br />