Finance Committee Agenda and Packet 2021 07 19

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City Council Finance Committee Meeting Minutes 06/14/21 Page 3 of 6 • Bond Counsel. o Provides a written opinion on the validity of the bond offering, the security for the offering, and whether and to what extent interest on the bonds is exempt from income and other taxation. • Financial Advisor. o Provides information and recommendations on all aspects of the issuance, including market opportunities, method of sale, structure, term, pricing, and fees. • Method of Sale. o Competitive sale o Negotiated sale o Private placement • Refunding of Debt. • Arbitrage Liability Management. As part of the discussion, the Committee asked for a review of the debt service mil levy in the Fall as part of the 2022 budget review process. Director Watson provided information on the City's current outstanding debt obligations by presenting schedules from the City's budget document and the City's Annual Comprehensive Financial Report. The report and corresponding narrative can be located in the packet of the June 14, 2021 Finance Committee Meeting. UPDATE ON RENEWAL & REPLACEMENT CALCULATIONS FOR RECREATION CENTER Kevin Watson, Director of Finance, presented an updated calculation of the Recreation Center renewal and replacement reserve requirements. The update was based on an updated equipment listing provided by the Recreation staff. The costs and useful lives of these items have been incorporated into the new reserve requirement calculations. The report and corresponding narrative can be located in the packet of the June 14, 2021 Finance Committee Meeting. RESERVE POLICIES — DISCUSSION Kevin Watson, Director of Finance, presented an overview of the City's Reserve Policies. The Reserve Policies help define the appropriate level of financial resources to guard against service disruption in the event of unexpected revenue shortfalls or unanticipated one-time expenditures. The policies document the appropriate reserve levels to protect the City's credit worthiness and maintain its good standing with bond rating agencies.