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(Draft January 2002) Key Financial Strategies <br /> For Elk River <br /> <br />25,000,000 <br /> <br />20,000,000 <br /> <br />15,000,000 <br /> <br />10,000,000 <br /> <br />5,000,000 <br /> <br />I~ase <br /> <br />Revenue <br /> <br /> F/gure 22 - Out~tand/ng G.O. Debt <br /> <br />Debt is also measured in the demand on financial resources. The chart below <br />contains the annual debt service payments for existing debt. <br /> <br /> Debt is largely supported by utility revenues and special assessments. <br /> · A small portion of the debt is supported by tax increments. <br /> · Annual payments drop creating capacity to support future projects. <br /> <br />4,000,000 <br /> <br />3,500,000 <br /> <br />3,000,000 <br />2,500,000 <br />2,000,000 <br />1,500,000 <br />1,000,000 <br />500,000 <br />0 <br /> <br />· Lease <br />o Revenue <br /> <br />· Improvement <br /> <br />F/gure 23 - Annual Debt Sen,ice <br /> <br />The bond rating provides a benchmark for the creditworthiness of the City. <br />Moody's Investors Service currently assigns an "A3" rating with a positive <br />outlook to the general obligation debt of the City. The positive outlook signals <br /> <br />Page <br /> 37 <br /> <br /> <br />