Laserfiche WebLink
3.03 The City will not use short-term borrowing to finance operating needs except in the case of an extreme <br />financial emergency which is beyond its control or reasonable ability to forecast. <br />4. Decision Analysis <br />4.01 Whenever the City is contemplating a possible bond issue, information will be developed concerning the <br />following categories commonly used by rating agencies assessing the City's creditworthiness. <br />4.02 The City may use the services of qualified internal staff and outside advisors to assist in the analysis, <br />evaluation and decision process, including bond council and financial advisors. This policy is intended to <br />insure that potential debt complies with all laws and regulations, as well as sound financial principles. <br />5. Debt Planning <br />5.01 General obligation bond borrowing should be planned and the details of the plan will be incorporated in <br />the City's Five (Ten) Year Capital Improvement Plan. <br />6. Communication and Disclosure <br />6.01 Financial reporting and disclosure requirements will be fulfilled annually according to the disclosure <br />guidelines of the Government Finance Officers Association of the U.S. and Canada. <br />7. General Obligation Bonds <br />7.01 Capital projects proposed for financing through General Obligation debt should be accompanied by a <br />full analysis of the future operating and maintenance costs associated with the project. <br />7.02 Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the useful life of <br />the asset to be financed. The City will attempt to keep the average maturity of General Obligation <br />bonds at or below 20 years. <br />7.03 The City will comply with MN Statutes 475.53 that limits debt of municipalities at 3% of the market <br />value of taxable property in the municipality. <br />8. Revenue Bonded Debt <br />8.01 It will be a long-term goal that each utility or enterprise will ensure future capital financing needs are <br />met by using a combination of current operating revenues and revenue bond financing. <br />8.02 Each utility or enterprise should provide adequate debt service coverage. <br />This policy was adopted by City Council on: <br />