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1 <br />i <br />1 <br />~ ~ ~ City of Elk River <br />March 13, 2008 <br />~~; Page 20 <br />~, <br />Debt-to-Assets Leverage Ratio (Solvency Ratio) <br />The debt-to-assets ]everaae ratio is a comparison of a citys total liabilities to its total assets or the percentage of total assets that <br />are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long-Tenn <br />obligations (i.e. a ratio of 50 percent would indicate half of the assets are financing with outstanding debt). <br />30°% <br />28°/u <br />26% <br />24% <br />22% <br />2\/~~II <br />I ~°/D <br />t 6% <br />14% <br />274/„ 26"/,~ 26'% <br />t')"/o <br />1>°/U <br />18"/° <br />23"/0 <br />2004 2005 2006 2007 <br />~~~City ratio ~'~Pcer group average <br />Debt Service Coverage Ratio (Solvency Ratio) <br />the debt coverage ratio is a comparison of cash generated by operations to total debt service payments (principal and interest) of <br />enterprise funds. This ratio indicates if there are sufficient cash flows frotn operations to meet debt service ohligati ons. F,xcept in <br />cases where other nonoperating revenues (i.e. taxes, assessments, transfers from other funds, etc.) are used to fund debt service <br />payments, an acceptable ratio would be above 100 percent. <br />500% <br />450% <br />400°io <br />350% <br />300`% <br />250% <br />200°/0 <br />150% <br />100% <br />433% <br />392% <br />226"/0 22~1'~0 <br />210'% 210"/" <br />! 92"/. <br />2004 2005 2006 2007 <br />City ratio #Peer group average <br />932.Ri:>.9090 Fax 952.833261 <br />w ww.acrocpes.<nm <br />