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0 <br /> 344—.1. Every project proposed for financing should be accompanied by a full analysis of <br /> associated future operating and maintenance costs. <br /> 2,4.2. Prior to submitting a financing project to City Council for approval, Finance Department <br /> staff will undertake an analysis that examines the following: <br /> 3.2.1.4.2.1. Debt Analysis <br /> • Debt capacity <br /> • Purpose for which debt is issued • <br /> • <br /> • Debt structure <br /> • <br /> • Debt burden <br /> • Debt history and trends <br /> • Adequacy of debt and capital planning <br /> • Obsolescence of capital plant <br /> 3-2-2-4 2 2 Financial Analysis <br /> • <br /> • Stability, diversity, and growth rates of revenue sources <br /> • Trends in assessed valuation and collections <br /> • Current budget trends <br /> • Historical revenue and expenditure trends <br /> • Fund balance status and trends in operating and debt funds <br /> • Cash flow projections <br /> 37343. Debt service payments will be structured to match projected cash flows from targeted <br /> funding sources. <br /> 344.4. Premium or discount bonds may be issued based on capital market demand and <br /> project funding requirements. <br /> 3: 4.5. When appropriate, the City will finance capital projects with self-supporting revenue • <br /> bonds to most closely match those paying for a project with those who benefit. <br /> 3-6:4.6• Bonds will be sold on a competitive basis unless factors relating to the sale or current <br /> market conditions indicate that it is in the best interest of the City to conduct a <br /> negotiated sale. <br /> 3,7,4.7. Credit enhancements shall be considered with a cost/benefit analysis for each long- <br /> term bond issue. <br /> 3:8:4.8. Bond proceeds will be invested according to Arbitrage and Tax Certifications and City <br /> Investment Policy. <br /> 3;-94.9. The City shall maintain compliance with arbitrage rebate requirements in accordance <br /> with the Internal Revenue Service (IRS) Code and City Ordinance#1358-87. <br /> 349-:4.10. Reserve accounts shall be maintained as required by bond ordinances and where <br /> deemed advisable. Reserves shall be structured such that they do not violate IRS <br /> regulations. <br /> 3 .11. The City may use the services of qualified internal staff and outside advisors to <br /> assist in the analysis, evaluation, and decision process, including bond counsel and <br /> financial advisors. <br /> r. <br /> Q7 <br />