4.6. SR 04-06-2015 - Laserfiche WebLink

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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. Professional Services. The city shall use an outside bond attorney and an independent financial advisor to structure the sale. E. Debt Management Practices 1. Investment of bond proceeds. The city shall invest bond proceeds in a capital project fund. 2. Disclosure: 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. Arbitrage Rebate: The city shall complete an arbitrage rebate report for each issue no less than every five years after its date of issuance. 4. Communication: The city will maintain frequent and regular communications with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The city will comply with Securities Exchange Commission (SEC) reporting requirements. F. Post issuance debt compliance policy The City Council (the "Council ") of the City of Elk River, Minnesota (the "City") has chosen, by policy, to take steps to help ensure that all obligations will be in compliance with all applicable state and federal regulations. This policy may be amended, as necessary, in the future. Background The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the "Code ") and related regulations governing certain obligations (for example: tax - exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various "Tax Credit" Bonds. The IRS expects issuers and beneficiaries of these obligations to adopt and implement a post- issuance debt compliance policy and procedures to safeguard against post - issuance violations. Post - Issuance Debt Compliance Policy Objective The City desires to monitor these obligations to ensure compliance with the IRS Code and related regulations governing such obligations. To help ensure compliance, the City has developed the following policy (the "Post- Issuance Debt Compliance Policy'. The Post - Issuance Debt Compliance Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance. The Finance Director of the City is designated as the City's agent who is responsible for post- issuance compliance of these obligations. However, to the extent obligations are issued for municipal utility purposes, the Finance Director /Office Manager of Elk River Financial Management Policies Page 12