Legal Documents of Pittman Center

Code of Pittman Center

Table of Contents » Title 5 Municipal Finance and Taxation » Chapter 5 Debt Policy » § 5-505 Role of debt.
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Title 5
5-1
Title 5, Chapter 1
5-101
§ 5-101
Pittman Center
Title 5 : Municipal Finance and Taxation
Chapter 5 : Debt Policy

5-505 : Role of debt.

  1. Long-term debt shall not be used to finance current operations. Long-term debt may be used for capital purchases or construction identified through the capital improvement, regional development, transportation, or master process or plan. Short-term debt may be used for certain projects and equipment financing as well as for operational borrowing; however, the town will minimize the use of short-term cash flow borrowings by maintaining adequate working capital for enterprise funds, available cash for governmental funds, and close budget management.
  2. In accordance with generally accepted accounting principles and state law,
    1. The maturity of the underlying debt will not be more than the useful life of the assets purchased or built with the debt, not to exceed thirty (30) years; however, an exception may be made with respect to federally sponsored loans, provided such an exception is consistent with law and accepted practices.
    2. Debt issued for operating expenses must be repaid within the same fiscal year of issuance or incurrence. (Ord. #241, June 2012, as replaced by Ord. #329, Jan. 2024 Ch2_01-08-24))