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Notes may be either from general revenues or backed by a specific revenue <br />stream or streams or by a combination of both. The term of the CO's will not <br />exceed the useful life of the major capital projects funded by the certificate <br />issuances and will generally be limited to no more than twenty years. Neither <br />CO's nor Notes require a vote of the citizens of the City. <br />4. Method of Sale — The Director of Finance will use a competitive bidding <br />process in the sale of bonds unless the nature of the issue or market conditions <br />warrant a negotiated sale. In situations where a competitive bidding process is not <br />elected, the Director of Finance will publicly present the reasons why and will <br />participate with the City's Financial Advisor in the selection of the underwriter or <br />direct purchaser. <br />C. Analysis of Financing Alternatives — The Director of Finance will explore <br />alternatives to the issuance of debt for major capital projects. These alternatives will <br />include, but are limited to: 1) grants -in -aid, 2) use of fund balance or working capital, 3) <br />use of current revenues, 4) contributions from developers and others, 5) leases, and 6) <br />impact fees. <br />D. Conditions for Using Debt — Debt financing of major capital projects will be done <br />only when the following conditions exist: <br />- When non- continuous projects (those not requiring continuous annual appropriations) <br />are desired; <br />- When it can be determined that future users will receive a benefit from the major <br />capital project; <br />- When it is necessary to provide basic services to residents and taxpayers (for <br />example, purchase of water rights); <br />- When total debt, including that issued by overlapping governmental entities, does not <br />constitute an unreasonable burden to the residents and taxpayers. <br />E. Costs and Fees — All costs and fees related to debt issuance will be paid out of <br />debt proceeds. <br />F. Debt Limitations — The City maintains the following limitations in relation to debt <br />issuance: <br />An Ad Valorem tax rate of $1.20 per $100 of assessed value is the maximum <br />municipal tax rate that may be levied for all General Fund tax supported expenditures <br />and debt service. <br />- Debt payments made solely from ad valorem tax revenue should not exceed 20% of <br />combined General Fund and Debt Service Fund expenditures. <br />Total outstanding debt should not exceed 5% of the current year's taxable assessed <br />valuation. <br />