City of Raleigh
Management’s Discussion and Analysis
At the end of the current fiscal year, the City had total general obligation bonds outstanding
of $304.3 million. The remainder of the City’s debt represents revenue bonds ($617.4 million) and installment
financing agreements ($670.0 million – installment notes, certificates of participation, limited obligation bonds,
etc.) secured solely by specified revenue sources and property.
State statute limits the amount of general obligation debt a governmental entity may issue to 8.0% of the total
assessed value of taxable property. The City’s outstanding net debt of $1,139.7million
(Legal Debt Margin Information
is significantly less than the current debt limitation of $4,298.0 million.
Raleigh continues to benefit from outstanding credit ratings as evidenced by the aforementioned placements,
earning the highest general obligation and revenue bond credit ratings and excellent certificate of participation
and limited obligation bond ratings from all three major rating agencies.
Additional discussion concerning the outstanding debt of the City has already been addressed in the Financial
Highlights section of this report. Further information on the City of Raleigh’s long-term debt can be found in the
notes to the financial statements on pages 39 – 51 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
As noted in the above discussion and analysis, the financial results for the year ended June 30, 2016 continue to
reflect positive trends in the local economy. The improvements in property tax, sales tax and certain growth related
revenues are projected to continue for fiscal year 2016-17 and, combined with ongoing diligent management
of City expenses, should result in the City again meeting our fund balance goals and maintaining our AAA/Aaa
general credit ratings. Through these budget plans, City management and staff remain committed to providing
Raleigh citizens a high quality of service at a reasonable cost.
(in millions of dollars)
2016 2015 2016
General obligation bonds
Installment financing agreements 225.9
$1,054.0 $1,027.9 $1,610.3 $1,591.7