City of Marion, IA
Home MenuDebt Management and Investor Relations
The Finance Department is responsible for the management of the City's debt, including the structuring of the debt, bond sales, credit rating presentations, ongoing reporting, legal compliance and the principal and interest payments.
General Obligation Debt Limitation
The Iowa Constitution states that no city may become indebted in any manner, or for any
purpose, in an amount exceeding five percent of the value of taxable property in the city. The
Iowa Supreme Court has ruled that this provision applies only to debt payable from property
taxes. The Iowa General Assembly has enacted a statute which interprets this Constitutional
provision to allow the calculation of a city’s debt capacity against the 100% or actual valuation
of property, rather than the taxable value which incorporates the “roll-back”. Further this limit
applies only to outstanding principal amounts of debt. Accordingly, a city’s sum total of
outstanding loans, bonds, notes, or other instruments payable from property taxes cannot exceed
the principal amount of five percent of the actual valuation of the city.
| January 1, 2024 100% Valuation | 4,503,806,765 |
| State Limitation (5% of 100% Valuation) | 225,190,338 |
| Local Limitation set by Financial Policies (50% of State Limitation) | 112,595,169 |
Enterprise Debt Limitation
There is no legal limit on the amount of debt a city may have that is payable from city utility or
enterprise revenues.
| Bond Series | Bond Type | Balance at 06/30/2025 |
| 2015A | General Obligation | 6,470,000 |
| 2015B | General Obligation | 485,000 |
| 2017A | General Obligation | 4,660,000 |
| 2018A | General Obligation | 1,740,000 |
| 2019A | General Obligation | 4,730,000 |
| 2019B | GO Annual Appropriation | 2,545,000 |
| 2019C | General Obligation | 6,530,000 |
| 2018A | Revenue | 2,833,874 |
| 2019D | General Obligation | 5,785,000 |
| 2020A | General Obligation | 8,255,000 |
| 2020B | General Obligation | 3,575,000 |
| 2021A | General Obligation | 6,515,000 |
| 2021B | General Obligation | 840,000 |
| 2020 RU | Revenue | 4,239,359 |
| 2020 SS | Revenue | 2,123,040 |
| 2020 SW | Revenue | 2,119,679 |
| Linn REC | General Obligation | 240,000 |
| 2022A | General Obligation | 9,495,000 |
| 2023A RU | Revenue | 7,400,000 |
| 2023B | General Obligation | 6,530,000 |
| 2023C | General Obligation | 3,060,000 |
| 2023D Sewer | Revenue | 6,750,000 |
| 2023E Solid Waste | Revenue | 7,220,000 |
| 2024A | General Obligation | 4,265,000 |
| 2025A | General Obligation | 4,100,000 |
| 2025B | GO Annual Appropriation | 7,810,000 |
| Totals | 120,315,951 | |
| Total General Obligation | 77,275,000 | |
| Total GO Annual Appropriation | 10,355,000 | |
| Total Revenue | 32,685,951 | |
| General Obligation Bond Series | Payment Type | FY 2026 | FY 2027 | FY 2028 | FY 2029 | FY 2030 |
| 2015A | Interest | 194,100 | 174,750 | 154,800 | 134,400 | 113,400 |
| 2015A | Principal | 645,000 | 665,000 | 680,000 | 700,000 | 715,000 |
| 2015B | Interest | 13,585 | 7,105 | - | - | - |
| 2015B | Principal | 240,000 | 245,000 | - | - | - |
| 2017A | Interest | 126,925 | 120,225 | 111,600 | 102,850 | 93,850 |
| 2017A | Principal | 335,000 | 345,000 | 350,000 | 360,000 | 370,000 |
| 2018A | Interest | 52,200 | 44,100 | 35,700 | 27,150 | 18,300 |
| 2018A | Principal | 270,000 | 280,000 | 285,000 | 295,000 | 300,000 |
| 2019A | Principal | 335,000 | 345,000 | 350,000 | 360,000 | 375,000 |
| 2019A | Interest | 141,900 | 131,850 | 121,500 | 111,000 | 100,200 |
| 2019B | Principal | 175,000 | 180,000 | 185,000 | 195,000 | 200,000 |
| 2019B | Interest | 76,350 | 71,100 | 65,700 | 60,150 | 54,300 |
| 2019C | Principal | 685,000 | 705,000 | 745,000 | 785,000 | 830,000 |
| 2019C | Interest | 195,900 | 175,350 | 154,200 | 131,850 | 108,300 |
| 2019D | Principal | 430,000 | 440,000 | 450,000 | 455,000 | 465,000 |
| 2019D | Interest | 125,425 | 116,825 | 108,025 | 99,025 | 89,925 |
| 2020A | Principal | 200,000 | 200,000 | 200,000 | 700,000 | 710,000 |
| 2020A | Interest | 182,401 | 178,401 | 174,401 | 170,401 | 156,401 |
| 2020B | Principal | 975,000 | 1,030,000 | 1,090,000 | 480,000 | |
| 2020B | Interest | 178,750 | 130,000 | 78,500 | 24,000 | |
| 2021A | Principal | 400,000 | 405,000 | 405,000 | 410,000 | 415,000 |
| 2021A | Interest | 91,383 | 87,383 | 83,333 | 79,283 | 74,978 |
| 2021B | Principal | 160,000 | 165,000 | 170,000 | 170,000 | 175,000 |
| Linn REC Note | Principal | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 |
| 2021B | Interest | 16,800 | 13,600 | 10,300 | 6,900 | 3,500 |
| 2022A | Principal | 435,000 | 460,000 | 470,000 | 490,000 | 510,000 |
| 2022A | Interest | 372,450 | 350,700 | 336,900 | 318,100 | 298,500 |
| 2023B | Principal | 230,000 | 245,000 | 260,000 | 270,000 | 280,000 |
| 2023B | Interest | 326,500 | 315,000 | 302,750 | 289,750 | 276,250 |
| 2023C | Principal | 3,060,000 | ||||
| 2023C | Interest | 134,487 | ||||
| 2024A | Principal | 145,000 | 150,000 | 160,000 | 165,000 | 175,000 |
| 2024A | Interest | 186,500 | 179,250 | 171,750 | 163,750 | 155,500 |
| 2025A | Principal | 60,000 | 135,000 | 140,000 | 150,000 | 155,000 |
| 2025A | Interest | 188,969 | 187,025 | 180,275 | 173,275 | 165,775 |
| 2025B | Principal | 305,000 | 340,000 | 385,000 | 430,000 | 660,000 |
| 2025B | Interest | 407,766 | 396,496 | 381,563 | 364,404 | 344,520 |
| Totals | 12,137,391 | 9,054,160 | 8,836,297 | 8,711,287 | 8,428,699 |
| ESSENTIAL CORPORATE PURPOSE BONDS | |
|---|---|
| Iowa Code Section | Chapter 384 Sections 24 and 25 |
| Authorized Projects | Traffic control devices; street lighting; sidewalks; sanitary and storm sewers; solid waste collection and disposal; bridges; legal indebtedness; joint projects with government entities; air, water, and noise pollution control; flood protection; equipping of fire, police, street, sanitation, civil defense and data base systems; cemeteries; ambulances; to improve dams already owned; improve airports already owned; improve parks already owned; improve CATV systems already owned; waterworks; insurance; dangerous buildings or nuisances; housing; emergency communication equipment; disaster relief; and reimbursement for disaster relief |
| Approval Process | Public Hearing; No referendum required |
| Considerations | Subject to the City's debt limit; 20 year amortization |
| Revenue Sources | Property Taxes; Plus abatements by Other Sources. Possible abatements include: Special Assessments, Utility Revenues, and Tax Increment |
| GENERAL PURPOSE BONDS | |
|---|---|
| Iowa Code Section | Chapter 384 Sections 24 and 26 |
| Authorized Projects | Non-Essential Public Improvements such as: non-essential utilities or enterprises; parks and recreation; swimming pools; golf courses; municipal buildings; new dams; tree removal from private property; greenhouses; new airports; joint projects; or any other project which is necessary for the operation of the City of the health and welfare of its citizens |
| Approval Process |
Referendum required if project cost is:
60% majority required for approval |
| Considerations |
Referendum; Subject to the City's debt limit; 20 year amortization |
| Revenue Sources |
Property Taxes; Plus abatements by Other Sources. Possible abatements include: Special Assessments, Utility Revenues, and Tax Increment |
| URBAN RENEWAL (TAX INCREMENT) BONDS (G.O. OR REVENUE BONDS) | |
|---|---|
| Iowa Code Section | Chapter 403 |
| Authorized Projects | Any "Urban Renewal Project" within a defined TIF area |
| Approval Process | Public Hearing (both G.O. & Revenue Bonds); Resolution of Necessity & Approval of Urban Renewal Plan (both G.O. & Revenue Bonds); Reverse Referendum required for G.O. bonds; No reverse referendum required for revenue bonds |
| Considerations |
Subject to the City's debt limit; Project must be within a TIF area; Revenue bonds must be repaid with TIF revenues; 20 year amortization |
| Revenue Sources |
Tax Increment Revenues (G.O. & Revenue Bonds); Property Taxes and other abatements (G.O. bonds only) |
| LEASE PURCHASE CONTRACT (GENERAL FUND) | |
|---|---|
| Iowa Code Section | Chapter 364 Section 4 |
| Authorized Projects | Real or personal property |
| Approval Process |
Public hearing for personal property leases; Public hearing requirements for real property are based on the lease amount and population, similar to General Purpose Bonds requirements |
| Considerations |
Annual payments may not exceed 10% of last certified general fund budget; subject to general fund rate limitations; Term of lease cannot exceed the economic life of the property |
| Revenue Sources |
Debt service levy (property taxes) or General fund revenues |
| INTERIM FINANCING (PROJECT NOTES) | |
|---|---|
| Iowa Code Section | Chapter 76 Section 13 |
| Authorized Projects | Any projects previously authorized |
| Approval Process | Public Hearing (for G.O. Bonds) |
| Considerations | Short-term financing issued in anticipation of bond proceeds, state or federal grants, or project revenues |
| Revenue Sources |
Property Taxes; Plus abatements by: Special Assessments, Utility Revenues, and Tax Increment |
| DISASTER RECOVERY BONDS | |
|---|---|
| Iowa Code Section |
Sections 76.1-2, 331, 384.25, 384.103, 404B.1-7 (as amended by 2009 Senate File 457) |
| Authorized Projects | Remediation, restoration repair, replacement and improvement of property, equipment, and public facilities damaged by a disaster |
| Approval Process | Public Hearing; Reverse Referendum - 20% >= $3M |
| Considerations | Must be proclaimed disaster emergency; must be issued within 10 years; 30 year amortization; Subject to debt limit |
| Revenue Sources | Property Taxes |
| OTHER FINANCING OPTIONS | |||
|---|---|---|---|
| Local Option Sales Tax Bonds (G.O. or Revenue) | Special Assessment Revenue Bonds | Enterprise Fund Revenue Bonds | |
| Chapter 423B, Chapter 384 Section 24A | Chapter 384 Sections 37-79 | Division V or Chapter 384 | |
| Specifics will vary by issue | |||
An Official Statement (OS) for a municipal bond is a document that provides detailed information about a specific bond issuance. It's similar to a prospectus for corporate securities and serves as a key disclosure document for investors. The OS outlines the essential terms of the bonds, including their structure, repayment details, and the financial and economic characteristics of the issuer.
General Obligation Corporate Purpose Bonds, Series 2025A Official Statement
Taxable General Obligation Annual Appropriation Urban Renewal Bonds, Series 2025B Official Statement
City of Marion General Obligation Debt
Moody's Credit Rating History
| April 2010 - Present | Aa1 |
| December 2001 - March 2010 | Aa2 |
| November 1999 - November 2001 | Aa3 |
| November 1993 - October 1999 | A1 |
| Prior to November 1993 | A |
Continuing disclosure requirements for municipal bonds mandate that issuers provide ongoing information to investors after the initial bond issuance. This ensures transparency in the secondary market and helps investors assess the ongoing financial health and operational status of the issuer. These requirements are primarily governed by SEC Rule 15c2-12 and are facilitated through the Municipal Securities Rulemaking Board's (MSRB) Electronic Municipal Market Access (EMMA) system
Continuing Disclosure Submission - For the Year Ended 06/30/2024