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SUBJECT: DEBT POLICY & OUTSTANDING DEBT OBLIGATIONS <br />DATE: JUNE 14, 2021 <br />PAGE4OF51 <br />3.4 Bond Counsel. <br />• Bond counsel provides a written opinion on the validity of the bond offering, the <br />security for the offering, and whether and to what extent interest on the bonds is <br />exempt from income and other taxation. <br />• The policy requires a competitive process for retaining bond counsel. <br />3.5 Financial Advisor. <br />• The financial advisor provides information and recommendations on all aspects <br />of the issuance, including market opportunities, method of sale, structure, term, <br />pricing, and fees. <br />• The policy requires a competitive process for selecting financial advisor services. <br />3.6 Method of Sale. <br />• As a matter of general policy, the City shall seek to issue its general obligation <br />and revenue bond obligations with a competitive sale process unless it is <br />determined by the City's Financial Advisor and Finance Director that such a <br />method will not produce the best results for the City. <br />• Other methods of sale that may be authorized by the Financial Advisor and <br />Finance Director are a negotiated sales process and a private placement <br />process. <br />• Conditions that may favor a negotiated sale process are: <br />o The bond issue is, or contains, a refinancing that is dependent on market <br />timing; <br />o At the time of the issuance, the interest rate environment or economic factors <br />that affect the bond issue are volatile; <br />o The nature of the debt is unique and requires particular skills from the <br />underwriter; or <br />o The debt issuance is bound by a compressed timeline due to extenuating <br />circumstances that prevent a competitive process from being accomplished. <br />• Whenever a negotiated sale process is determined to be in the best interests of <br />the City, the City will use a competitive process to select its investment banking <br />team. <br />3.7 Refunding of Debt. <br />• Periodic reviews of all outstanding debts will be undertaken by the Finance <br />Director and Financial Advisor to determine refunding opportunities. <br />CITY COUNCIL COMMUNICATION <br />9 <br />