Res 2003-172 - Laserfiche WebLink

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. Maintaining a debt service coverage ratio which ensures that combined debt service requirements will not exceed revenues pledged for the payment of debt; and . To the extent possible, the City will aim to repay at least 25% of the principal amount of its general obligation debt within five years and at least 50% within 10 years. The City may choose to structure debt repayment so as to wraparound existing debt obligations or to achieve other financial planning goals. I. Credit Enhancement - The City should seek credit enhancement (let1ers of credit, bond insurance, surety bonds, etc.) when such credit enhancement proves cost effective. Credit enhancement may be used to improve or establish a credit rating on a debt obligation even if such credit enhancement is not cost effective if the use of such credit enhancement meets the financial planning goals. J. Financing Methods ~ The City maintains the following guidelines in relation to methods of financing used to issue debt: . Where it is efficient and cost effective, the City will use revenue or other self- supporting bonds in lieu of tax supported/pledged debt instruments. . When appropriate, the City will issue non-obligation debt, for example, Industrial Development Revenue bonds, to promote community stability and economic growth. K. Reftmding - Periodic reviews of all outstanding debt will be undertaken to determine reftmding opportunities. Refunding will be considered if and when there is a net economic benefit of the reftmding or the refunding is essential in order to modernize covenants which impinge on prudent and sound financial management. L. Full and Complete Disclosure - The City of San Marcos is committed to full and complete financial disclosure, and to cooperating with credit rating agencies, institutional and individual investors, City departments, other levels of government, and the general public to share clear, comprehensible and accurate financial information. Official statements accompanying debt issues, comprehensive annual financial reports, and continuous disclosure statements will meet, at a minimum, the standards articulated by the Municipal Standards Rulemaking Board, the National Federation of Municipal Analysts, the Government Accounting Standards Board (GASB), and the Securities Exchange Commission (SEC). The City Finance Department will be responsible for ongoing disclosure to nationally recognized municipal securities information repositories (NRMSIRs). Updates of budget, debt and financial information will be provided to credit rating agencies and investors when new debt is issued. M. Credit Rating - The City of San Marcos seeks to maintain the highest possible credit ratings for all categories of debt that can be achieved without compromising the delivery of basic City services. City of San Marcos Financial Policy Page 13 of 17