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Article: Measuring Debt Capacity: The Washington County, Maryland Experience.
- Article from:
- Government Finance Review
- Article date:
- August 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...