Finance Committee Agenda and Packet 2021 06 14

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SUBJECT: DEBT POLICY & OUTSTANDING DEBT OBLIGATIONS DATE: JUNE 14, 2021 PAGE5OF5 • Refundings will be considered (within legal constraints) if and when there is a net economic benefit of or if the refunding is essential in order to amend covenants to enhance operations and management. • As a general rule, refundings will only be considered if the present value savings (net of all costs) of a particular refunding will exceed five percent (5%) of the refunded principal. 3.8 Arbitrage Liability Management. • It is the City's policy to minimize the cost of arbitrage rebate and yield restriction while strictly complying with the law. • The City will not issue obligations except for identifiable projects with very good prospects of timely initiation. • Because of the complexity of the arbitrage rebate regulations and the severity of non-compliance penalties, the City will use the services of Bond Counsel and other arbitrage compliance experts when determining arbitrage liability, reporting, and exemptions. 3.9 Financial Disclosure. • The City is committed to full and complete financial disclosure and to cooperating fully with rating agencies, institutional and individual investors, other levels of government, and the general public to share clear, comprehensible, accurate, and timely financial information. • Continuing disclosure requirements under Rule 15c2-12 issued by the Securities and Exchange Commission (SEC) may apply to certain debt transactions of the City. The City will comply with all such Federal or other State reporting requirements on a timely basis. • The City is committed to meeting continuing disclosure requirements of the national information repositories. ATTACHMENTS 1. Debt Policies 2. Debt Schedules from Budget Document 3. Debt Schedule from Annual Comprehensive Financial Report — Footnote 7 CITY COUNCIL COMMUNICATION 10