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20 <br /> Refunding: <br />o Current refunding bonds shall be utilized when present value savings of 3% of <br />refunded principal is achieved or in concert with other bond issues to save costs of <br />issuance. <br />o Special assessment or revenue debt will not be refunded unless the Finance <br />Director determines that special assessments or other sufficient revenues will not <br />be collected soon enough to pay off the debt fully at that call date. <br /> <br /> Professional Services. The City shall use an outside bond attorney and an independent <br />municipal advisor to structure the sale of debt. <br /> <br />Debt Structuring Practices <br /> <br /> Term: State law limits general obligation debt to 30 years in most circumstances. The City <br />shall generally structure public improvement bonds not to exceed 10 years in term. <br /> <br /> The City will follow a “pay-as-you-go” capital funding policy, supporting capital spending <br />with the use of debt whenever feasible. In evaluating the use of long-term debt, the City <br />will consider such things as scheduled improvements, the availability of funds on hand to <br />finance the project, the cost of issuance, the opportunity to bundle multiple projects in the <br />issue, and the current interest rate market. Bond issues will be structured to ensure that <br />debt is repaid within a period not to exceed the expected useful life of the project. <br /> <br /> The City will usually issue debt with level principal and interest payments. <br /> <br /> The City shall have a call date (pre-payment date) as short as possible consistent with <br />achieving the best interest rates possible for the City. Obligations shall be callable at par. <br /> <br />Post Issuance Practices <br /> <br /> Continuing Disclosure: The City shall comply with SEC rule 15(c)2(12) on primary and <br />continuing disclosure. The Finance Director is responsible for providing ongoing <br />disclosure information and will be assisted by the City’s Municipal advisor in the <br />execution of this task. <br /> <br /> Arbitrage Rebate and Monitoring: The Finance Director is responsible for working closely <br />with the Municipal advisor and Bond Council to determine if and when arbitrage rebate <br />reports are required to be completed for each issue. <br /> <br /> Investment of Debt Proceeds: The City will temporarily invest the proceeds of debt <br />obligations in accordance with its investment policy. Interest earnings realized within <br />construction accounts will be applied first toward the payment of project costs, then for <br />payment of debt service associated with the obligations. <br /> <br /> <br /> <br />Approved by Council 06-24-2019 <br />