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6 <br /> o The County will maintain its net bonded debt at a level not to exceed <br /> 3% percent of the assessed valuation of taxable property within the <br /> County. <br /> o The County will strive to maintain its annual debt service costs at a <br /> level no greater than 15% percent of general fund revenues, <br /> including installment purchase debt. This is a recommended "best <br /> practice" from the Government Finance Officers Association. <br /> Summary of Existing Financial Policies - graph - page 9 <br /> Existing Tax Supported Debt - graph - page 11 <br /> Tax Supported Debt Service - graph <br /> Par Outstanding — Estimated as of 6/30/2016 <br /> Tax Supported Debt Service <br /> Key Debt Ratio: Tax Supported Payout Ratio - page 12 <br /> • Rating Considerations: <br /> — Moody's: Moody's rating criteria for General Obligation credits allows for a <br /> scorecard adjustment if an issuer has unusually slow or rapid amortization of <br /> debt principal. <br /> — S&P: A payout ratio greater than 65% results in a one point positive <br /> qualitative adjustment to the Debt & Contingent Liabilities section of S&P's <br /> General Obligation rating methodology. <br /> • Existing 10-year Payout Ratio <br /> — FY 2017: 89.7% <br /> • The 10-Year Payout Ratio measures the amount of principal to be retired in the next 10 <br /> years. <br /> • This ratio is an important metric that indicates whether or not a locality is back-loading <br /> its debt. <br /> • The County does not have a Financial Policy setting a minimum 10-Year Payout Ratio. <br /> Key Debt Ratio: Tax Supported Debt to Assessed Value <br /> TS Debt to Assessed Value Peer Comparative (Lower is Better) - page 13 <br /> • Rating Considerations: <br /> — Moody's: Criteria for General Obligation Credits defines categories of Debt <br /> to Assessed Values as: <br /> o Very Strong (Aaa): < 0.75% <br /> o Strong (Aa): 0.75% - 1.75% <br /> o Moderate (A): 1.75% - 4.00% <br /> o Weak—Very Poor (Baa and below): > 4.00% <br /> — S&P: A positive qualitative adjustment is made to the Debt and Contingent <br /> Liabilities score for a debt to market value ratio below 3.00%, while a <br /> negative adjustment is made for a ratio above 10.00%. <br /> • Existing Tax Supported Debt to Assessed Value <br /> — FY 2017: 1.01% <br /> • Assumed Future Growth Rates <br /> — 2016 Assessed Value: $16,778,182,392 <br /> — 2017 Budgeted A.V.: $16,942,732,752 <br />