Calculate debt service burden and rate of debt payback for the City of Tallahassee
What is the debt service burden for the City of Tallahassee? What is the percentage of debt principal payback in the next five years for the City of Tallahassee? What is the percentage of debt principal payback in the next ten years for the City of Tallahassee? How does the City of Tallahassee's debt principal payback over the next ten years compare to the credit agency norms described in the textbook?
Debt Service Burden Calculation
Debt Service Burden = (Total Tax-Supported Debt Service Expenditures / Total Revenues) * 100
Plugging in the values:
Debt Service Burden = ($7,940 / $109,901) * 100
Debt Service Burden = 7.2%
Percentage of Debt Principal Payback Calculation
According to the schedule of debt service requirements, $37,515 thousand of the total governmental activity debt is scheduled to be paid off between 2020 and 2024. To calculate the percentage of debt principal payback in the next five years, we use the formula:
Percentage of Debt Principal Payback in the Next Five Years = (Principal Payback in 2020-2024 / Total Governmental Activity Debt) * 100
Plugging in the values:
Percentage of Debt Principal Payback in the Next Five Years = ($37,515 / $96,125) * 100
Percentage of Debt Principal Payback in the Next Five Years = 39.0%
Comparison with Credit Agency Norms
To compare the City of Tallahassee's debt principal payback over the next ten years to credit agency norms, we need additional information from the textbook. Without specific norms, a direct comparison cannot be made.