55D - RESO DEBT MGMT POLICY - Laserfiche WebLink

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a) during a high interest rate environment; b) if the source for repayment fluctuates, and is anticipated to move in the same direction as market -generated variable interest rates, or the dedication of revenues allows capacity for variability; and c) if financing structure and budgetary safeguards are in place to prevent adverse impacts from interest rate shifts Moreover and in accordance with rating agency guidelines, the percentage of variable rate debt outstanding shall not exceed 20% of the City's total outstanding debt. DEBT ISSUANCE Service Providers During the course of a debt issuance, the City must select several professional services providers. The Santa Ana Issuers will utilize the services of independent financial/municipal advisors, underwriters, and pertinent legal counsel on all debt financings as well as other parties depending on the type of financing. Additionally, the City will require that all providers have the highest ethical standards as it relates to their performance with no existing material or egregious legal grievances against them or pending investigations for the same. The City will require full disclosure of any history of grievances or legal proceedings against providers 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 financial/municipal advisory firms. Resolution No. 2018 -XXX Page 7 of 9 5501-9