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  <br />For the past thirty years, the City has been referring to a resolution that was adopted July 27, 1994 <br />to guide decisions related to conduit debt issuance and conduit debt rates. In 1994, the interest <br />rate market supported a financing fee of 1 percent (1%) for initial issuance and ¼ percent (¼%) <br />for the issuance of conduit debt refunding (Resolution 94-7-203). The financial information from <br />this resolution is outdated and is not currently included in our Finance Policy. Staff recommends <br />that the City of Little Canada Finance Policy be amended to include a Conduit Debt Policy. The <br />benefits of including an updated Conduit Debt Policy in the Finance Policy are: <br />1) Provides City Council authority to approve or deny conduit debt issuance <br />2) Financial costs reimbursed appropriately for managing the obligation <br />3) Encourages local or regional economic development <br />4) Clearly defines the City’s Conduit Debt Policy <br /> <br />FISCAL IMPACT <br />The updated policy provides for a nonrefundable processing fee of $2,500. Additionally, the <br />financing fee is recommended at ½ of 1% for the issuance of the tax-exempt initial financing and <br />¼ of 1% for tax-exempt refunding. The rate recommendation is based on recent market trends <br />from various neighboring communities and recent City issuances. Further, the City may also <br />negotiate an alternative debt issuance fee on a case-by-case basis. <br /> <br />RECOMMENDED ACTION <br />City staff recommends that the City Council approve a resolution to adopt and incorporate the <br />updated Conduit Debt Policy as part of the existing Finance Policy. <br /> <br />ATTACHMENTS: <br />1) Updated Finance Policy <br />2) Extract for City’s Council meeting minutes from July 27, 1994 <br /> <br /> <br />