The City's borrowing power is restricted by amended Article X, Section 14 of the South Carolina Constitution, which became effective on November 30, 1977. This section provides that a local government unit cannot at any time have total general bonded debt outstanding (excluding certain lease and installment obligations) in any amount that excceeds 8% of its total assessed property value. Issuing debt commits the City's revenues years into the future and may limit the City's flexibility to respond to changing service priorities, revenue inflows or one-time expenditures.
The following is the City's legal debt margin computation:
The following is the City's breakdown of budgeted principal and interest for FY23 debt payments:
The City's Debt millage rate increased to 17.3 mils in FY 2023.