AgdaPkt 2007-03-26 - Laserfiche WebLink

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3113107 in the operating fund, should be at least 1.20 times the annual debt service casts. G. Refundings -The City shall review its outstanding debt for the purpose of determining if the financial marketplace will afford the City the opportunity to refund an issue and lessen its debt service costs. For refundings undertaken to achieve debt service savings, the sum total of al( savings (net of expenses and funds contributed by the issuer at the time of closing}, discounted to the present at the bond true interest cost, should at a minimum produce net present value savings equal to at least 3% of the par amount of refunding bands to be sold. Refundings may be undertaken for reasons other than to achieve debt service savings, such as to remove restrictive covenants or restructure debt payments. Such restructuring refundings do not need to achieve 3% net present value savings. H. Conduit Debt -When appropriate the City will use special assessment debt (such as 1915 Act bonds), special tax debt (such as Mello-Roos bonds), or mortgage revenue bonds so that those benefiting from the improvements will absorb all or part of the cost of the project financed. Those responsible for the repayment of such debt will also be responsible far paying all ongoing administrative costs including credit enhancement fees, trustee fees and the cost of City staff and consultants deemed necessary for the proper administration of the debt. City Charter and State and Federal Laws -All debt issued must be in conformance with applicable sections of the City Charter along with state and federal laws in effect at the time of issuance. J. Use of Public Financing Authorities -Depending upon the nature of the debt being issued the City may elect to use an existing public financing authority {or may elect to create a new public financing authority} should doing so be to the City's advantage. K. Interfund Borrowing -From time to time, there may be advantages far the City to enter into loans between funds or between the City and the Redevelopment Agency. Unless otherwise approved by the respective governing bodies, the interest rates on such loans will not be lower than the rate that the fund providing the loan is able to earn in the County Pool or Local Agency Investment Fund (whichever rate is higher) when the loan is approved. L. Arbitrage Rebate Monitoring -Staff will comply with the arbitrage rebate and monitoring requirements as set forth by the U.S. Treasury Department. Should staff determine that it is advisable to do so, arbitrage rebate analysis reports may be performed more frequently than once every five years as is required by the U.S. Treasury Department. 6.1 B Page 5 M. Investment of Band Proceeds -Bond proceeds will be invested only in investments as permitted by the applicable governing document of the bond issue. When placing such investments, staff will ensure that there is sufficient