City posts stellar financial report (again)
Wednesday, 20 November 2013 12:52
The City of Clear Lake could probably teach the federal government a thing or two about fiscal responsibility.
Again in fiscal year 2013 the City excels in limiting its debt. Monday night City Administrator Scott Flory presented the Annual Financial Report which will be submitted to the Iowa Department of Management and the State Auditor’s Office.
Flory explained the Iowa Constitution limits the amount of General Obligation debt a City may incur to no more than five percent of its 100 percent valuation. For fiscal year 2013, the City’s GO debt limit was $39,289,338. Typical counsel for auditors and municipal finance advisors is that a City should not incur any more than 70 percent GO indebtedness or risk potential adverse bond ratings. For Clear Lake, that threshold would be roughly $27.5 million, he said. Clear Lake currently has less than $5 million in GO debt or less than 13 percent of its capacity.
“I believe we have one of the lowest levels for a community of our size not only in Iowa or the Midwest-- but for the nation,” said Flory. - Read More via e-Edition