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<br />The city will use the least expensive financing method for all capital projects <br />including multiple cost estimates and bids when appropriate and required by <br />law. <br />The city's infrastructure fund will loan funds to any construction fund with a <br />deficit due to expenditure and revenue timing. <br />The storm sewer, water, and sanitary sewer funds will transfer funds to <br />construction funds for their share of any unassessed portion of the cost of those <br />items. <br />VI. DEBT POLICIES <br />A. Purpose <br />The debt policies ensure that the city's debt 1) does not weaken the city's <br />financial structure; and 2) provides limits on debt to avoid problems in servicing <br />debt. This policy is critical for maintaining the best possible credit rating for the <br />city. <br />B. Policy <br />• The city will not use long-term debt for current operations. <br />The city will confine long-term borrowing to capital items or capital projects. <br />The city will pay back bonds within a period not to exceed the expected life of the <br />project. <br />The city will not exceed 2 percent of the market value of taxable property for <br />general obligation debt per state statutes. <br />The city will consider the maintenance of the best possible credit rating in <br />making all decisions on debt. <br />The city will follow a policy of full disclosure on financial reports and bond <br />prospectus. <br />The city will refinance or call any debt issue when interest rates are beneficial <br />for future debt savings. <br />• <br />18 <br />