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FC# <br /> <br /> CONDUIT DEBT POLICY <br />By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />~l'he City has recently been approached by Crestview and Lord of Life Church about the <br />issuance of debt for their respective projects in the Ramsey Town Center and Highway <br />47. The debt that would be issued is known as conduit debt, or pass-through debt. This <br />is the same form of debt that the PACT charter school used for the financing of their <br />school last year. <br /> <br />Currently, there is no policy in place of how the City should handle conduit debt. With <br />more development within Town Center and area wide, the City is more likely to se.e an <br />increase of entities inquiring about the possibility of conduit debt. A policy needs to be <br />implemented that clearly establishes that the City holds no legal and or debt <br />responsibility for the debt of the outside entity. <br /> <br />The attached draft policy outlines the steps that the City could choose to follow for the <br />issuance of conduit debt. <br /> <br />Committee Recommendation: <br /> <br />Reco~nmend to City Council the adoption of the conduit debt policy. <br /> <br />Council Action: <br /> <br />Adopt City policy outlining the terms and conditions for the issuance of conduit debt. <br /> <br />FC-05-10-05 <br /> <br />-353- <br /> <br /> <br />