Debt may be incurred for the purchase of high cost fixed assets and equipment in order to spread the cost of such items over their useful life. Debt will be periodically reviewed and carefully controlled. The use of debt for operating purposes is restricted to a level that is sustainable and ensures that decisions are made in consideration of college goals and operating budget needs.
The college may issue debt for the purpose of acquiring high cost fixed assets and equipment.
Clover Park Technical College shall issue debt through legally authorized instruments in such amounts that the annual debt service cost to the college in any one fiscal year for all outstanding debt shall not exceed seven percent (7%) of that year’s annual operating budget base allocation, as provided by the State Board of Community and Technical Colleges.
The college may identify specific revenue sources for use in payment of annual debt service against debt issues for the purposes stated herein. Revenue supported debt may be considered as debt outside of the 7% general debt limit of the college.
In order to qualify as revenue supported debt, a debt issue must:
The college may issue revenue supported debt only upon prior authorization of the Board of Trustees or appropriation in the annual operating budget.
Revised: 2009, 2016