Debt Obligations
As of May 24, 2022, the outstanding debt obligations of the City of Portage not associated with water and sewer (enterprise) funds are as follows:
The city is expected to issue $3.6 - 3.9 million in Capital Improvement bonds on May 18, 2022. The amount is unknown as this time and is therefore not included in the debt obligations but will be updated in the final budget.
Legal Debt Limitations
The city is subject to several legal debt limitations. The debt limitations are for specific types of debt and expressed as a percentage of State Equalized Valuation (SEV), which is 50 percent of true cash value. The debt limits and debt margins are as follows:
With this comparison of related obligation-types to their specific legal debt margins, the city is significantly under the dollar limits as prescribed by state law.
As illustrated above, the city's debt load is manageable and should not adversely impact future operations.
On May 12, 2021, S&P Global Ratings assigned the ‘AA+’ rating to the City of Portage for the fourth consecutive year.
Total Non-Enterprise Debt Funds - Debt Maturity Schedule
General Obligation Debt Fund
The General Obligation Debt Fund accumulates monies for the payment of principal and interest on various street and public facility projects, and the city share of special assessment bond issues. These serial and term bonds are due in annual principal installments, plus semi-annual interest installments, until maturity. Financing for debt issued is provided by appropriation of a portion of a property tax levy for public improvements authorized pursuant to the City Charter. In conformance with generally accepted accounting principles, Capital Improvement Program project-related debt service is recorded in this fund with offsetting transfers in from the Capital Improvement Fund.
Revenue & Expenditures
General Obligation Debt Fund - Debt Maturity Schedule
Building Authority Debt Service
This fund accounts for the debt service on Building Authority bonds issued for city projects such as Fire Station No. 3, Department of Public Works facilities, Bicentennial Park acquisition and development, and South Westnedge Park Improvements.
Revenue & Expenditures
Building Authority Debt Fund - Debt Maturity Schedule
Downtown Development Authority Debt Fund
Downtown Development Authority (DDA) debt service is paid from the taxes levied on the captured value of the improvements made to parcels within the DDA boundaries.
Revenue & Expenditures
DDA Debt Fund - Debt Maturity Schedule
Revenue and Expenditures
Local Development Finance Authority Debt Fund
This fund accumulates tax monies from the captured tax base in the Local Development Finance Authority district for the payment of principal and interest on the 2004 and 2005 Local Development Finance Authority (LDFA) bonds. The 2004 LDFA bond funded the purchase of 80 acres of land conveyed to facilitate industrial development. The 2005 LDFA bond was issued for road widening and improvements for Sprinkle Road, and water main installation.
LDFA Debt Fund - Debt Maturity Schedule
Special Assessment Debt Fund
The Special Assessment Debt Service Fund accounts for the repayment of bonds issued to finance the costs of various construction projects. Property owners were assessed a proportionate share of estimated project costs as determined by Council resolution. Assessments may be paid in full or over a period of up to 20 years through annual installments. Bond payments are made with the assessments collected, and for one issue with transfers in by special arrangement.