Legal Documents of Rocky Top

Code of Rocky Top

Table of Contents » Title 5 Municipal Finance and Taxation » Chapter 6 Debt Policy » § 5-605 Role of debt.
Print This Page
PDF
Go to
5
Title 5
5-1
Title 5, Chapter 1
5-101
§ 5-101
Rocky Top
Title 5 : Municipal Finance and Taxation
Chapter 6 : Debt Policy

5-605 : 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 city will minimize the use of short-term cash flow borrowing by maintaining adequate working capital and close budget management.
  2. In accordance with Generally Accepted Accounting Principles (GAAP) 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. #467, Jan. 2012)