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Report by Finance Director regarding Amortization Fund Reserve Balance as of December 31, 2023
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
The Public Debt Commission has the responsibility of monitoring the Amortization funding level and approve any disbursements from the fund.
B. Background/Options
As of December 31, 2023, the Amortization Fund had a balance of $9,161,125 which represented 112% of the annual general obligation debt service paid with property tax levy as shown below. This is a decrease from 116% in the prior year. The Fund Balance Policy requires a minimum of 125% so no disbursements have been included in the 2025 Executive Budget. Given budget constraints and levy limits, it is difficult to increase this fund to match increases in debt service. The result is that it is unlikely this fund will be used to cash finance capital in the foreseeable future and the funding ratio will continue to drop.
C. Strategic Plan (Area of Focus)
Priority Area One: Economic Development & Financial Resilience
D. Fiscal Impact
None
E. Recommendation
For informational purposes only