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March 23, 2026 <br /> <br /> <br />2. Debt Service to Revenue Ratio, less than 10% <br /> <br />FINDING: Compliant at 7.8% <br />This ratio falls below the typical threshold of 10% and is projected to decline over the next <br />five years. This indicates that debt capacity can be leveraged to achieve critical <br />infrastructure and facility needs. However, the city should be mindful of its debt affordability <br />and limit debt issuances to at or near current debt service levels. <br /> <br /> <br />10-year payout ratio greater than 50% <br /> <br />Finding: Compliant at 73% <br /> <br />This ratio measures the amount of principal paid over the last ten years relative to the <br />total outstanding debt. It indicates that the city is responsibly amortizing its debt and <br />avoiding a situation in which it is deferring its debts to the detriment of future decision- <br />makers. <br /> <br />Legacy Pension Systems <br /> <br />The city complies with its retirement system funding policy, which states that the city will <br />find the actuarially determined contribution (ADC) for the city’s legacy pension systems. <br />The FY 2027 budget includes $10.1 million to fund the city’s legacy pension obligations, <br />with $8.0 million going to the Fire and Police Retirement System and $2.1 million going to <br />the Supplemental Retirement System. City Council has also directed staff to evaluate and <br />provide an additional $1,500 payment, costing $1.4 million. An additional $11.0 million <br />goes to pay debt service on the Pension Obligation Bonds. The total $21.1 million one- <br />year budget funds 942 total participants. This substantial contribution poses significant <br /> <br /> <br /> <br /> <br />