Camp Verde council could approve budget at Wednesday special meeting
CAMP VERDE – Two weeks ago, several Camp Verdeans told Town Council that they were not pleased with the Town’s 52-percent debt ratio.
Wednesday, the Camp Verde Town Council is expected to approve the Town’s fiscal year 2018-2019 budget, a budget that illustrates the difference between the 52-percent debt ratio and the 9-percent debt service ratio.
The difference between the two, according to Camp Verde Council member Brad Gordon, is akin to “manufactured drama due to an election year.”
“Do you pay off your house in a year?” Gordon asked. “The town’s reserves are still a million dollars-plus above the required statutory minimum.”
Gordon also said that the “reported 52 percent debt ratio is skewed.”
Debt ratio means debt to assets. Debt service ratio means debt budget to revenue.
For a breakdown of the Town’s debt service fund, see page 55 of the Town of Camp Verde’s proposed budget, which can be found at: http://www.campverde.az.gov/wp-content/uploads/2017/12/07-11-2018-Packet-Special-Budget-Adoption.pdf.
In a summary of Camp Verde’s sales tax, S&P Global Ratings assigned an AA-minus long-term rating to the town’s series 2017 pledged revenue obligation bonds, with a “stable” outlook.
In its Nov. 28, 2017 credit profile, S&P Global Ratings stated that Camp Verde’s outlook “reflects our view of the town’s pledged revenue growth, reinforced by the town’s growing population and ongoing development.”
S&P Global Ratings stated in its report that the AA-minus rating reflects the company’s view of the following:
-Camp Verde’s recent and projected pledged revenue growth;
-Camp Verde’s “very strong” annual debt service coverage based on estimated fiscal 2017 pledged revenues; and
-The “limited likelihood” that Camp Verde will issue additional debt to the fullest extent of the additional bonds test due to its reliance on pledged revenues for operations.
S&P Global Ratings also stated that the company does “not expect to change the rating during the two-year outlook horizon.”
Council will hold a public hearing at 6 p.m. Wednesday before it votes to adopt the fiscal year 2018-2019 budget. Camp Verde Town Council will meet in council chambers, located at 473 S. Main St., Suite 106.