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Executive Summan 5 z . d. The City shall conduct financings on a competitive basis unless for reasons of market volatility, the use of an unusual financing structure, or a complex security structure indicates the negotiated financing is preferred. e. The City will monitor all forms of debt on an annual basis coincident with the city's Budget and Capital Improvement Program hearing process and report concerns and remedies, if needed, to the City Council. f. For Enterprise operations and property owner-initiated financings, the City will attempt to issue debt that is self-supporting for user fees and charges, assessments, and special taxes, and not backed or funded by General Fund revenues. g. The City will seek to maintain its rating on any direct debt and will seek credit enhancements, such as Letter of Credit or insurance, when necessary for marketing purposes, availability, and cost-effectiveness. h. The City shall diligently monitor its compliance with bond covenants and ensure its adherence with federal arbitrage regulations. i. Advance refunding of outstanding bonds will be considered when the present value savings, at a minimum, are in excess of the cost of issuing refunding bonds. . j. The City will work with overlapping debt issuance jurisdictions to develop a coordinated debt management program. k. Capital improvements should be funded primarily using user fees, service charges, assessments, special taxes or developer agreements when benefits can be attributed to users of the facility. I. User fees and charges will be directly related to the "full cost" of providing the service (direct and indirect costs). These fees and charges will be reviewed and revised annually, as required. New Revenues Property Tax: The City must make a policy decision regarding service levels. Maintaining current service levels necessitates increasing the City's levy. The City should investigate alternative levy scenarios, especially in light of the levy limitation. Comprehensive Annual Review: All revenue items should be reviewed annually. Debt Financing: The City has a variety of financing vehicles at its disposal including General Obligation Bonds, CIP Bonds, various types of Revenue Bonds, and financing leases. The selection of a particular financing vehicle will be made annually based upon overall financing needs and market conditions. The city will identify, analyze, and dedicate a revenue source to fund debt service on any proposed issue. . Other: The City should investigate other revenue sources which assign particular benefit. ® SPRINGSTED Page 5