§ 3.09.060. Financial Benchmarks.

The District strives to maintain a strong credit profile in order to provide assurance to customers, bond holders, rating agencies and other stakeholders that the District proactively manages its financial resource and is financially sustainable. These benchmarks will be evaluated on an annual basis and communicated to the Board. The District has set forth the following financial benchmark goals:

A.

Debt Ratio: The Debt Ratio is a financial ratio that indicates the percentage of the District's capital assets that are provided via debt financing. It is the District's goal to maintain a Debt Ratio between thirty (30) to forty (40) percent.

B.

Credit Rating: The District's credit rating has a direct impact on the access to financial markets and the cost of incurring debt. It is the District's goal to maintain AA+ (Standard & Poor's), Aa1 (Moody's) and/or AA+ (Fitch).

C.

Number of Day's Cash: The District's liquidity position has a large impact on the District's credit rating. It is the District's goal to maintain a level of Days Cash between three hundred sixty-five (365) and four hundred (400) days.

D.

Capital Improvement Funding Levels: In accordance with the District's Debt Management Policy 1.5, the District will evaluate the benefits of utilizing Pay-Go and/or debt financing to determine the optimal funding strategy of capital improvements. It is the District's goal to utilize a balance approach to capital project funding at a level of forty (40) percent debt, thirty (30) percent Pay-Go and thirty (30) percent reserve funding.

E.

Debt Service Coverage: The District is required to maintain a minimum debt service coverage ratio as set forth in the outstanding bond documents. It is the District's goal to exceed the minimum coverage ratio with a goal of 2.25 times the annual debt service payment.

( Res. No. 2015-11-5, § 1, 11-24-2015 ; Res. No. 2018-12-1 , § 7, 12-11-2018)