6.3. SR 03-11-2013 - Laserfiche WebLink

Home Browse Search

D. Debt Issuance Practices 1. The city shall utilize a rating agency for debt issuance of more than $1million or terms longer than 3 years. 2. The city shall use competitive bidding debt unless the debt is so specialized in its nature that it will not attract more than two bids. 3. Refunding a. Advance refunding bonds shall not be utilized unless present value savings of 4-5% of refunded principal is achieved and unless the call date is within 4 years. Bonds shall not be advance refunded if there is a reasonable chance that revenues will be sufficient to pre-pay the debt at the call date. b. Current refunding bonds shall be utilized when present value savings of 3% of refunded principal is achieved or in concert with other bond issues to save costs of issuance. c. Special assessment or revenue debt will not be refunded unless the Finance Director determines that special assessments or other sufficient revenues will not be collected soon enough to pay off the debt fully at that call date. 4. An outside bond attorney and an independent financial advisor shall structure bond sales. E. Debt Management Practices 1. The city shall invest bond proceeds in a capital project fund. 2. The city shall comply with SEC rule 15(c)2(12) on primary and continuing disclosure. Continuing disclosure reports shall be filed no later than 180 days after receipt of the city's annual financial report. 3. The city shall complete an arbitrage rebate report for each issue no less than every five years after its date of issuance. 4. The city has also adopted post issuance debt compliance policy as a separate policy. ACCOUNTING, AUDITING AND FINANCIAL REPORTING The city will establish and maintain the highest standard of accounting practices,in conformity with Generally Accepted Accounting Principles (GAAP) and provide for the following: • Attempt to maintain the GFOA Certificate of Excellance in Financial Reporting. • Arrange for an annual audit of all funds and account groups by independent certified public accountants or by the State Auditor's Office. • Present monthly a summary of financial activity by major type of funds as compared to budget. Department Directors will review monthly reports comparing actual revenues and expenditures to the budget. Negative projected year-end departmental variances exceeding$5,000 in any revenue or spending category (Personal Services, Supplies, Other Charges and Services, Capital Outlay) will be reported in writing to the Finance Director and the City Administrator. RISK MANGEMENT The city will maintain a Risk Management Program to minimize the impact of legal liabilities, natural disasters or other emergencies through the following acitivies: Financial Management Policies Page 9