VT LCT Debt Capacity Calculator.xlsx

	A	B	C
1	Debt Capacity Calculator
2	Town/City
3	Debt Capacity
4	General Fund
5	Date
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7	Variable	Input Value	Description
8	Current Population	5,000.00	From latest census or local estimate
9	Net Assessed Value (NAV)	300,000,000.00	Total taxable property value
10	Annual Opperating Revenues	800,000.00	General Fund or Total Governmental Revenues
11	Existing Outstanding Debt (Principal)	200,000.00	General obligation debt
12	Existing Debt service (annual)	50,000.00	Total annual payments (principal + interest)
13	Interest Rate Assumption (new debt)	2.00%	Use a conservative fixed rate
14	Term of New Debt (months)	32.00	Use months so that the formula works correctly
15	New Project Cost	100,000.00	Cost of potential project to be finished
16	Metric	Output Value	What it means
17	Debt per Capita ($)	$ 40.00	Measures the average debt burden on a per-person basis. Can be useful for comparisons between towns
18	Debt to NAV (%)	0.07%	Measures overall debt burden on tax base
19	Debt Service to Revenue (%)	6.25%	Measures how much of a municipality’s annual revenue is consumed by debt payments. (Recommended maximum: ≤ 10% — GFOA) Example - 20% means 0.20 cents of every dollar is going to cover debt.
20	Legal Debt Limit (for public improvement)	$ 3,000,000,000.00	As stated in 24 V.S.A. § 1762 "A municipal corporation shall not incur an indebtedness for public improvements which, with its previously contracted indebtedness, shall, in the aggregate, exceed ten times the amount of the last grand list of such municipal corporation..."
21	Legal Debt Margin	$ 2,999,800,000.00	Your remaining borrowing capacity under the legal debt limit.
22	Additional Debt Service on a New Project	$ 4,261.06	The payment your town would make for a new project if it took on new debt—like for a capital project
23	Total Projected Annual Debt Service	$ 150,000.00	This gives you a complete picture of your future annual obligations if you proceed with the proposed new debt
24	Projected Debt per Capita ($)	$ 60.00	Measures the average projected debt burden on a per-person basis.
25	Projected Debt to NAV (%)	0.10%	Measures overall projected debt burden on tax base
26	Projected debt service to revenue (%)	19%	Measures how much of a municipality’s annual revenue is consumed by projected debt payments
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