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 A1 (considered upper medium grade and subject to low credit risk) as assigned and maintained by Moody's Investors Service in December 2025. The City does not maintain a current revenue bond rating. The December 2025 Rating Action completed by Moody's included the following details: " The A1 issuer rating reflects the city's robust financial position that has improved in the past few years given revenue growth and prudent budgeting practices. By the end of fiscal 2024, the city’s fund balance and liquidity ratios represented a strong 90% and 95%, respectively. Fiscal 2025 ratios are expected to decline due to a one-time use of reserves and an increase in revenue; however, they will remain strong above 70% of revenue. The city's budgeting practices are expected to continue supporting a strong financial position. Additionally, the rating further reflects the city's economic stability, highlighted by its location near Kansas City." 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 4,372,908 20,689,082
Outstanding City Debt Subject to the Debt Limit Estimated Debt Authority Remaining as of 12/31/2024 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 1/1/2026.
Original Issue Amount
Principal Remaining 12/31/2026
Interest Rate
Date of Issue
Date of Maturity
2026 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
1,100,000
69,546
567,506
2.99%
12/14/2018
9/1/2028
300,449
34,692
66,868
1.50%
6/1/2020
4/1/2030
209,888
22,613
76,824
Projected Future Debt The 2026 Adopted Budget and 2026-2030 CMIP included the following assumptions.
Entering into a $6,349,000 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 2026.
Potential for issuance of short-term or long-term obligations to fund road infrastructure project.
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