The Raleigh City Council has adopted fiscally conservative policies and budgets that have allowed the city to continuously maintain a AAA bond rating since 1973, demonstrating the Council’s commitment to maintaining the highest standards of fiscal conservatism and credit-worthiness. Raleigh refinanced its public utility debt this year, saving rate payers $8 million.
Making Growth Pay for Growth
Most of the City’s debt is associated with capital improvements to enterprise fund services such as water and sewer utilities and solid waste services. It is important that enterprise fund debt is repaid from business related charges and not from general revenues such as property taxes.
In addition to maintaining a conservative debt ratio, Council maintains a conservative reserve ‘savings’ account of at least 14% of each year’s revenues.