Debt Limit The City's Debt, Bond and Interest Fund is used to account for the resources dedicated to the payment of the principal and interest on the City’s general obligation bonds. Revenues come from property taxes, special assessments, and transfers of surplus funds from capital projects or other funds like sales tax funds dedicated to repayment of debt service for specific obligations. The City’s most recent general obligation debt rating is A2 (considered upper medium grade and subject to low credit risk) as assigned and maintained by Moody's Investors Service in February 2022. The City does not maintain a current revenue bond rating. The February 2022 Rating Action completed by Moody's included the following details: "The A2 rating incorporates the small but modestly growing tax base with average resident income indices, and positive financial performance with healthy but nominally small reserves. The rating also reflects a manageable pension liability, but the debt burden is elevated which is contributing to above average fixed costs." The City is limited by State law in the amount of general obligation debt it can incur. This limit is set at 30% of the total assessed valuation, including motor vehicle assessments, of the City's tax district. The legal debt margin calculated as of December 31, 2024 is computed as follows: 2024/2025 Total Equalized Assessed Tangible Valuation 83,539,968 Debt Limit Ratio 30% Debt Limit 25,061,990 Outstanding City Debt Subject to the Debt Limit 4,372,908 Estimated Debt Authority Remaining as of 12/31/2024 20,689,082 Estimated Debt Authority Remaining as of 12/31/2024 (%) 82.6% Leases Kansas Cash Basis Law, K.S.A. 10-1101 et seq., allows the City to enter into lease-purchase agreements as the lessee for the financing of acquisition of equipment or facilities and comply with the requirements set forth in K.S.A. 10-1116b and 10-1116c. The City maintains three finance leases as of 1/1/2025.
Original Issue Amount 1,100,000
Principal Remaining 12/31/2025
Interest Rate
Date of Issue
Date of Maturity
2025 Total Payments
Lease Purchase
Police Station/City Hall Improvements Pierce Fire Pumper Apparatus Elgin Street Sweeper Equipment
2.44%
2/2/2016
9/1/2035
69,276
621,878
2.99%
12/14/2018
9/1/2028
300,449
34,692
98,843
1.50% Projected Future Debt The 2025 Adopted Budget and 2025-2029 CMIP included the following assumptions. 6/1/2020 4/1/2030 209,888
22,613
98,046
Entering into a $5,000,000 loan agreement with the Kansas Department of Health and Environment under the Kansas Water Pollution Control Revolving Fund for the purpose of financing a wastewater treatment project commencing in 2025. Completing the scheduled repayment of the entirety of the outstanding principal and interest for General Obligation Renewal Temporary Notes, Series 2023A in March 2025 utilizing available reserves in multiple funds.
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