Laserfiche WebLink
I <br /> • <br /> 34274.12. The City shall monitor its outstanding debt to determine if the marketplace will <br /> afford the opportunity to reduce debt service costs though refunding, either advance or <br /> current. In order to consider the possible advance refunding of an issue, a present <br /> value (PV) savings of three percent(3%) over the life of the respective issue, at a <br /> minimum, must be attained. <br /> •. a .• . '..S * ••.• ` -t••!• •. a..._ 'a. - - '• 'a-■ a ..- <br /> reducing exposure to fluctuations or levels of interest rates if the following conditions <br /> are met: <br /> The City Council finds by resolution that the payment agreement, if fully performed <br /> by all parties, will reduce the amount or duration of its exposure to changes in <br /> interest rates, or result in a lower the cost of borrowing with respect to the related <br /> obligations. • <br /> The City obtains, on or prior to the date of execution of the payment agreement, a <br /> certification from a financial advisor that the terms and conditions of the payment <br /> agreement and any ancillary agreements, including without limitation; the interest <br /> rate or rates and any other amounts payable thereunder, are commercially <br /> reasonable in light of then existing market conditions; and the finding and <br /> termination contained in the resolution is reasonable. <br /> Prior to selecting the other party to a payment agreement, the City shall solicit and <br /> set forth in RCW 39.96.040. <br /> 5. Short-Term Financing/Capital Lease Debt <br /> 5.1. Payment using cash-on-hand is the preferred method of financing vehicle, equipment, <br /> and rolling stock purchases. However, short-term or capital lease debt may be <br /> considered to finance these acquisitions when determined to be economically <br /> advantageous based on a cost-benefit comparison with upfront cash outlay. <br /> 5.2. When undertaking short-term financing or capital leasing, the Finance Department, in <br /> cooperation with the requesting department, will solicit competitive or negotiated <br /> proposals to ensure the lowest possible interest costs. <br /> 5.3. The term of short-term financing will be limited to the expected useful life of the asset. <br /> 6. Interfund Loans <br /> 6.1. The City Treasurer, under authority of Resolution #2927, may establish short-term <br /> interfund loans to maintain solvency of all City funds. <br /> 6.2. Interfund loans with fixed repayment schedules may be made with terms extending <br /> beyond one year with the approval of City Council. <br /> 10 <br />