Long-term debt. At the end of the current fiscal year, the Village of Grafton has total General Obligation debt outstanding of $37,861,446 entirely backed by the full faith and credit of the government. The Water and Wastewater Utility has $1,005,000 of outstanding revenue bonds to be paid through the collection of user fees. General Corporate Purpose Bonds were issued on June 8, 2016 in the amount of $1,130,000 for projects related to Tax Incremental District No. 3 (Downtown Redevelopment) and $2,910,000 for sewer projects. The Village of Grafton received an “Aa2” rating from Moody’s for debt issued on June 8, 2016, the most recent debt issued by the Village. State statutes limit the amount of general obligation debt a governmental entity may issue up to five percent of its total equalized valuation. The current debt limitation for the Village of Grafton is $62,178,116, which exceeds the Village of Grafton’s current outstanding general obligation debt. The Village Board has established a policy whereby the Village will not issue debt in excess of 85 percent of the state authorized debt limit. As of December 31, 2016, the Village of Grafton’s outstanding debt equaled 63 percent of the state authorized debt limit. The Grafton Water and Wastewater Utility generally will avoid debt by maintaining and building cash and investments for improvements through its rate structure. Since 1996, the utility has been allocating monies to reserved fund accounts established for a variety of future infrastructure improvements including water main replacement, sewer collection system replacement, and new wastewater treatment facilities and equipment. Additional information of the Village of Grafton’s long-term debt can be found in note III(F) on pages 72 - 75 and also in the statistical section on pages 150 – 153. Village of Grafton's Outstanding Debt Governmental Business-type Activities Activities Total 2016 2015 2016 2015 2016 2015 General obligation $31,788,456 $33,422,199 $6,072,990 $3,557,273 $37,861,446 $36,979,472 bonds and notes Revenue bonds - - 1,005,000 1,085,000 $1,005,000 $1,085,000 Total $31,788,456 $33,422,199 $7,077,990 $4,642,273 $38,866,446 $38,064,472 23