What are debt management tools used for?

Debt management tools are specifically designed to manage and optimize a municipality's debt profile. These tools enable finance officers and municipal managers to effectively assess the existing debt levels and structure, evaluate borrowing options, and implement strategies to minimize costs associated with debt service. Proper use of debt management tools can result in more favorable borrowing terms, improved credit ratings, and ultimately, better financial stability for the municipality.

These tools may include various financial instruments, policies, and practices that ensure debts are maintained at sustainable levels while effectively supporting the capital needs of the community. Effective debt management contributes to maintaining fiscal health and ensures that the municipality can meet its operational and capital financing needs without overextending itself financially.