Which document outlines the limits and strategies related to borrowing for municipalities?

The Debt Policy is a critical document for municipalities as it sets forth the framework for how a municipality intends to manage its borrowing activities. This policy typically articulates the goals and limits on debt levels, outlines acceptable types of debt instruments, and provides guidelines for decision-making regarding when and how much to borrow. It ensures that borrowing is conducted in a manner that supports the municipality's long-term financial health while also complying with statutory and regulatory requirements.

Additionally, a well-defined Debt Policy serves as a tool for transparency and accountability, guiding financial officials and governing bodies in making informed decisions that align with the municipality's fiscal strategy and capacity to repay. This document is essential for establishing a coherent approach to debt management, reducing the risk of over-leveraging, and maintaining fiscal stability.

In contrast, while the Debt Issuance Plan might detail specific borrowing projects, the Financial Report provides an overview of past financial performance, and the Budget Statement outlines planned expenditures and revenues, none of these focus specifically on the strategic limits and management of debt borrowing as comprehensively as a Debt Policy does.