Measuring Debt Capacity: The Washington County, Maryland Experience.
Government Finance Review › Vol. 16 Nbr. 4, August 2000
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Measuring Debt Capacity: The Washington County, Maryland Experience.
Using a case study of Washington County, Maryland, this article examines the steps necessary for benchmarking and measuring debt capacity.
In November 1999, the Research Center of the Government Finance Officers Association (GFOA) was engaged by Washington County, Maryland, to provide debt affordability consulting services. In particular, the GFOA was asked to analyze and forecast debt capacity and prepare a formal debt policy to guide Washington County's debt issuance and management. This article will focus on the methodology and process used by the GFOA to answer the question, "How much debt can Washington County afford to issue in the future?" The methodology used in this study can easily be adapted to any local government. Background Located in northwestern Maryland, Washington County is a community of 128,610 individuals. Although wealth and income levels are below the state average, they are growing, partly due to the increased commerce created by the county's access to three major interstate highways--Interstates 68, 70, and 81. In 1...See the full content of this document
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