HomeMy WebLinkAboutFY 2002 Debt ManagementDebt Management
Bond Authorization Process
The Town of Lexington is authorized to issue
debt pursuant to Massachusetts General Law,
Chapter 44, Sections 7 and 8. General
Obligation Bonds are secured by a pledge of
revenues through property taxes and are
authorized at Town Meeting by a two - thirds
vote. Bond Anticipation Notes are utilized prior
to the permanent issuance of bonds and are
shown in this budget as Temporary Borrowing
(Element 2230). Historically, the Town does
not put in a call provision for bond refunding
when selling bonds, as the Town is an AAA
rated community and as such enjoys
Debt Limits
Chapter 44, Section 10 of Massachusetts
General Law limits the authorized
indebtedness to 5% of the Town's equilized
valuation. The most recent State - determined
Equalized Valuation is $4,841,620,900 as of
January 1, 2000. While this provides a limit to
debt issuance for the Town, it is not realistic
that the Town will come near this limit in the
forseable future. Outstanding debt currently
absorbs 26% of the allowable 201,482,910 in
debt issuance.
competitive interest rates.
Exempt Debt
$47,450,000
Tax Levy Debt
4,015,000
Enterprise Debt
680,000
Chapter 90
975,000
Total Debt
$53,120,000
Most Recent Debt Issuance
February 15, 2001
Enterprise Debt
1%
Exempt Debt
89%
pter 90
2%
Tax Levy Debt