Agenda - Council - 10/25/2016 - Laserfiche WebLink

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3.03 The City will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency which is beyond its control or reasonable ability to forecast. 4. Decision Analysis 4.01 Whenever the City is contemplating a possible bond issue, information will be developed concerning the following categories commonly used by rating agencies assessing the City's creditworthiness. 4.02 The City may use the services of qualified internal staff and outside advisors to assist in the analysis, evaluation and decision process, including bond council and financial advisors. This policy is intended to insure that potential debt complies with all laws and regulations, as well as sound financial principles. 5. Debt Planning 5.01 General obligation bond borrowing should be planned and the details of the plan will be incorporated in the City's Five (Ten) Year Capital Improvement Plan. 6. Communication and Disclosure 6.01 Financial reporting and disclosure requirements will be fulfilled annually according to the disclosure guidelines of the Government Finance Officers Association of the U.S. and Canada. 7. General Obligation Bonds 7.01 Capital projects proposed for financing through General Obligation debt should be accompanied by a full analysis of the future operating and maintenance costs associated with the project. 7.02 Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the useful life of the asset to be financed. The City will attempt to keep the average maturity of General Obligation bonds at or below 20 years. 7.03 The City will comply with MN Statutes 475.53 that limits debt of municipalities at 3%of the market value of taxable property in the municipality. 8. Revenue Bonded Debt 8.01 It will be a long-term goal that each utility or enterprise will ensure future capital financing needs are met by using a combination of current operating revenues and revenue bond financing. 8.02 Each utility or enterprise should provide adequate debt service coverage. This policy was adopted by City Council on: October 25, 2016 Per Resolution #16-10-204