Finance Committee Agenda and Packet 2020 12 15

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• Private Bond Placement — the City sells its bonds to a limited number of sophisticated investors, and not the general public. • Program — a set of activities, operations, or organizational units designed and directed to accomplish specific service outcomes or objectives for a defined customer. Refunding — refinancing an outstanding bond issue by issuing new bonds. • Reserves — refers to unrestricted fund balance in governmental funds and working capital in proprietary funds. • Revenue Bonds — bonds secured by revenue generated by user fees or by other non -ad valorem revenue sources typically generated by the project being financed. Only the specific revenue source is pledged for the bond repayment. No taxing power or General fund pledge is provided as security. Revenue bonds are not subject to the City's debt limitation and voter approval is not required. • TABOR — the Taxpayer Bill of Rights amendment to the Colorado Constitution and other Colorado law and court decisions. • Treasuries — securities issued by the U.S. Treasury to finance the national debt. Treasury Bills are non -interest bearing discount securities that mature in one year or less. Treasury Notes are coupon bearing securities having initial maturities of two to ten years. Treasury Bonds are coupon -bearing securities having initial maturities of more than ten years. • Underwriter— a dealer that purchases new issues of municipal securities from the issuer and resells them to investors. The difference between the price at which the bonds are bought and the price at which they are offered to investors is the underwriter's discount. • Utility Fund Budgetary Basis Expenses — as used in the financial indicators, this term refers all expenses under the City's budgetary basis of accounting, less capital outlay and interfund transfers -out. • Working Capital — current assets less current liabilities. Used as a measure of reserves in proprietary funds. Proprietary funds, unlike governmental funds, report both capital assets and long-term debt, even though neither is directly relevant to near -term financing. Therefore, the difference between proprietary fund assets and liabilities (net position) is not equivalent to the fund balance reported in governmental funds, and is not a useful indicator of reserves. Yield — the rate of annual income return on an investment, expressed as a percentage. Income yield is obtained by dividing the current dollar income by the current market price for the security. Net yield or yield to maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 20