03-09-2016 Council Packet - Laserfiche WebLink

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9 pay-as-you-go basis. It can reduce long-term costs due to inflation, prevent lost opportunities, and equalize the cost of improvements among present and future constituents. The goal of the City’s debt management program is to stabilize the overall debt burden and future tax levy requirement, ensuring that issued debt can be repaid without weakening the City’s financial condition. Policy: The City’s use of debt will follow the guidelines provided below: • The City will not use long-term debt for current operations except in case of an extreme financial emergency, which is beyond the City’s control or reasonable ability to forecast. • The City will follow a “pay-as-you -go” capital funding policy, supporting capital spending without the use of debt whenever feasible. In evaluating the use of long-term debt, the City will consider such things as scheduled improvements, the availability of funds on hand to finance the project, the cost of issuance, the opportunity to bundle multiple projects in the issue, and current market for interest rates. Bond issues will be structured to ensure that debt is repaid within a period not to exceed the expected useful life of the project. • General obligation debt backed by a City tax levy will not exceed 2% of the total market valuation of taxable property, as provided by state law. • The City will maintain good communications with bond rating agencies regarding its financial condition. The City is committed to a policy of full disclosure in every financial report and bond prospectus. • The City may allow interfund borrowing which, in effect, enables the City to internally finance the cost of capital expenditures. • When feasible, the City will use refunding mechanisms to reduce interest cost and evaluate the use of debt reserves to lower overall annual debt service where possible. • Public Improvement bonds will generally be 10 years in length and would take into consideration the interest environment. X. Purchasing Purpose: The City will strive to obtain goods, materials, supplies, and equipment at the lowest price and best value for taxpayer dollars using reasonable efforts that promote efficiency and accountability for the disbursement of public funds. The City will also take steps to maximize revenues from the sale of unneeded City property or equipment. Policy on Purchasing: The City Administrator is designated to serve as the City’s purchasing agent and is authorized to develop procedures and internal controls providing for the proper disbursement of public funds. The City will require competitive bidding on the sale, purchase, or rental of supplies, materials, or equipment and on contracts for the construction, alteration, repair or maintenance of real or personal property estimated to exceed $50,000. For purchases estimated to cost more than $5,000 but less than $50,000, the City will attempt to obtain at least two written quotes that will be submitted and maintained with paid vouchers. The City will also maintain documentation of its efforts to obtain two written quotes if the City receives only one written quote.