Debt Service Summary

Debt Description

Debt will be used to finance long term capital projects and capital within the constraints of maintaining or improving bond ratings and debt service capacity. Debt management will provide for the protection of bond ratings, the maintenance of adequate debt service reserves, compliance with debt instrument provisions and appropriate disclosures to investors, underwriters, and rating agencies.

More information can be found on the Budget Process and Policies page.

Legal Debt Margin

City of Kalamazoo Bond Rating

City General Obligation AA-

Water System AA-

Wastewater System AA-

Types of Bonds

General Obligation Bonds:

General obligation bonds are the direct obligations and pledge the full faith and credit of the City. General obligation bonds have been issued to refund both general obligation and revenue bonds.

Building Authority Bonds - General obligation bonds issued under the authority of the Kalamazoo Building Authority for the acquisition and construction of public buildings and parking structures.

Capital Improvement Bonds - General Obligation bonds provide funds for the acquisition and construction of major capital facilities, infrastructure, and equipment.

Other Post Employment Benefits - In 2015, the City issued general obligation bonds to partially fund the City's other post-employment benefit obligations (OPEB). Proceeds of this OPEB bond were transferred to the OPEB Trust for payment of future benefits.

Revenue Bonds:

Revenue bonds are the bonds where the City has pledged income derived from the acquired or constructed assets to pay debt service.

Michigan Transportation Fund Bonds - Gas and Weight tax revenues from the State of Michigan are pledged for the payment of these bonds. The bonds were issued for the construction of Major and Local streets.

Wastewater Revenue Bonds - Wastewater system revenues are pledged for the payment of these bonds. The bonds were issued to finance Wastewater infrastructure, equipment, and plant upgrades.

Water Revenue Bonds - Water system revenues are pledged for the payment of these bonds. The bonds were issued to finance Water infrastructure, equipment, and sourcing assets.

Drinking Water Revolving Fund (DWRF) Loan:

Issued under the Michigan Finance Authority, these loan agreements are awarded through the State of Michigan Department of Environment, Great Lakes, and Energy (EGLE) to finance projects qualified under the DWRF program. The authorized projects include extending services to Parchment, Richland, and Cooper townships to replace existing services as part of the City's PFAS response partnership with those systems and the replacement of lead service connections in the City's water system.

Debt Service Schedule