Summary: As of September 30, 1994, the District of Columbia has $3.65 billion in long-term general obligation debt and the debt service as a percent of revenues was 11.42 percent. GAO estimates that the District's debt service percent will reach 13.84 percent by the year 2000--very close to the statutory 14-percent limit. The District's general obligation bond rating as of September 30, 1994, is the lowest investment grade rating and is below that of any state and nearly all of the largest cities. The bond rating has not changed since the District began issuing such bonds in 1984. Various debt indices are available to compare the District's debt levels with those of other jurisdictions. Two indices--debt per capita and debt as a percentage of real property--suggest that the District has a high level of debt when compared with other jurisdictions. However, the District is unique and such comparisons may not be meaningful because the District has service responsibilities that include elements of both city and state governments. GAO also found that the debt service percent calculations contained in the general obligation bond offering documents are based on the method required by the Home Rule Act. However, the debt service percent calculations found in the District's multi-year plans and annual financial statement plans are not consistent with this methodology and could mislead users of this information.
