55D - RESO DEBT MGMT POLICY - Laserfiche WebLink

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Debt Management Policy Page 5 their performance with no existing material or egregious legal grievances against them or pending i investigations for the same OF be URdeF investigaVen fGF any penmen• violation-. The City will require full disclosure of any history ofsaid-grievances or legal proceedings against providers iavestigatiens#rem The Santa Ana Issuers will strive to select service providers as necessary through a competitive bidding process. However, when appropriate, a sole -source selection may be allowed (i.e., timing of issuance, product & financing packaging). The overall goal is to achieve an appropriate balance between service and cost. Methods of Sale The Director of Finance shall also be responsible for determining the appropriate manner in which to offer any debt to investors, these include: competitive bid, negotiated sale and/or private placement, which will be considered on a case-by-case basis. The preference will be given to competitive sale method. In a competitive sale, the securities shall be awarded to the bidder providing the lowest interest cost as long as the bid adheres to the requirements set forth in the governing bond documents. In a negotiated sale, the City shall assess the following circumstances: a) size of the issue which may limit the number of potential bidders b) if market volatility is such that flexibility in timing the sale in changing interest rate environments is most beneficial for the City Debt Refunding The Finance Department shall also have the responsibility to analyze outstanding bond issues for refunding opportunities that may be presented by underwriting and/or f nancial/municipal advisory firms. In general, the City hereby establishes a net present value threshold of a minimum of three percent (3%) of the refunded bond principal amount. The net present value savings shall be net of all costs related to refinancing. Refunding debt that produce a net present value savings of less than three percent (3%) will be considered on a case-by-case basis. Refunding debt with negative savings will not be considered unless there is a compelling public policy objective that is accomplished by retiring the debt. In conjunction with the required net present value threshold, any savings from a refunding debt shall be significantly greater than the cost of issuance. DEBT MANAGEMENT The Finance Department, in collaboration with the requesting department, will be responsible for managing and coordinating all activities related to the issuance and administration of debt, including, but not limited to: a) investment of bond proceeds I. Investments of all bond proceeds or other forms of debt shall be consistent with federal tax requirements, any applicable state law requirements, the governing bond documents, and the City's Investment Polity as modified from time to time. b) monitoring compliance with bond covenants; -- 55D-17