Laserfiche WebLink
<br /> 2 <br />• When the debt is used to refinance outstanding debt in order to produce debt service <br />savings or to realize the benefits of a debt restructuring. <br /> <br />(b) Long-term debt financings will not generally be considered appropriate for current <br />operating expenses and routine maintenance expenses. <br /> <br />(c) The City may use long-term debt financings subject to the following conditions: <br /> <br />• The project to be financed must be approved by the City Council. <br /> <br />• The weighted average maturity of the debt (or the portion of the debt allocated to the <br />project) will not exceed the average useful life of the project to be financed by more <br />than 20%. <br /> <br />• The City estimates that sufficient revenues will be available to service the debt <br />through its maturity. <br /> <br />• The City determines that the issuance of the debt will comply with the applicable state <br />and federal law. <br /> <br />(ii) Short-term debt. Short-term debt may be issued to provide financing for the City’s <br />operational cash flows in order to maintain a steady and even cash flow balance. Short-term debt <br />may also be used to finance short-lived capital projects; for example, the City may undertake lease- <br />purchase financing for equipment. <br /> <br />(iii) Financings on Behalf of Other Entities. The City may also find it beneficial to issue debt <br />on behalf of other governmental agencies or private third parties in order to further the public purposes <br />of City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the <br />project to be financed and the financial solvency of any borrower and that the issuance of such debt <br />is consistent with the policies set forth herein. <br /> <br />B. Types of Debt <br /> <br />The following types of debt are allowable under this Debt Policy: <br /> <br />• General obligation bonds (GO Bonds) <br /> <br />• Bond or grant anticipation notes (BANs) <br /> <br />• Lease revenue bonds, certificates of participation (COPs) and lease-purchase <br />transactions <br /> <br />• Other revenue bonds and COPs <br /> <br />• Tax and revenue anticipation notes (TRANs) <br /> <br />• Land-secured financings, such as special tax revenue bonds issued under the Mello- <br />Roos Community Facilities Act of 1982, as amended, and limited obligation bonds <br />issued under applicable assessment statutes <br /> <br />• Tax increment financing to the extent permitted under State law <br />96