DEBT SERVICE FUND

The Debt Service Fund has been established to receive funds from a tax levy and other sources for the accumulation of funds to meet the annual principal and interest requirements on the outstanding general obligation debt of the City. The City has a current bond credit rating of AA- with a favorable outlook issued by Standard and Poor's Global Ratings.

Debt Policy

The City of Marble Falls’ debt management policy is to maintain the city’s ability to incur present and future debt at the most beneficial interest rates in amounts needed for financing the approved Capital Improvements Program without adversely affecting the city’s ability to finance essential city services.

Policy Statements

• A five-year Capital Improvements Program will be developed and updated annually along with corresponding anticipated funding sources.
• Capital projects financed through the issuance of bonded debt will be financed for a period not to exceed the useful life of the project.
• Efforts will be made to maintain or improve the city’s bond rating. Effective communication will continue with bond rating agencies concerning Marble Falls’ overall financial condition.

Legal Debt Margin

The State of Texas limits the maximum debt service to $2.50 for $100 assessed valuation. The Texas Attorney General has adopted an administrative policy that prohibits the issuance of debt that would result in a total debt service tax rate that exceeds $1.50 of the allowable $2.50. The City of Marble Falls follows these guidelines for debt limitation. The City Charter of Marble Falls requires a public hearing before the issuance of any debt.