POPULAR ANNUAL FINANCIAL REPORT FISCAL YEAR 2020 - PAGE 13 Debt Management A large part of Rock Hill’s long-term financial planning focuses on managing debt. The City uses fiscal prudence in the issuance and repayment of debt. Debt is typically issued for large-scale capital projects. These projects and funding are included in the annual capital improvement plan and are reviewed by the management team quarterly.
Existing Debt
Wastewater Treatment Plant construction, equalization basin
There are two different types of long-term debt the City issues—debt repaid with general revenues of the City (the full faith and credit of the City) and debt repaid by a specific revenue sources. The City monitors these different debt types to ensure that there is adequate ability to repay the debt. State statute authorizes the City to issue, without referendum, general obligation debt not to exceed 8% of the total assessed value of property. General obligation debt is typically used to finance public safety capital projects like the building of a new fire station. Debt issued from specific revenue sources (such as the Utility system or Hospitality tax) does not have legal limits, but the City makes investment based on the needs to the system. Ultimately, the City uses fiscal prudence in the issuance and repayment of debt, particularly focusing on investing in our system and leveraging historically low interest rates. Currently, the City has existing obligations of approximately $391 million. This is an increase from the prior year. Significant changes in debt obligations include an additional $12 million in TIF funding issued for infrastructure as well as utility debt due to wholesale provision of water and wastewater to new development in York County. These needed investments, specifically upgrading the water filtration plant, ensures high quality drinking water for customers and the expansion of the wastewater treatment plant safeguards the Catawba river. The City’s commitment to environmental stewardship must be balance with meeting the needs of our people. The obligations incurred have enabled to the City to make a substantial and significant investment in the infrastructure of the community, thereby improving the physical state of the community for residents, and making it more attractive to Parking Deck A at University Center, Knowledge Park. private investment.
