2018-009 - City of Santa Santa Ana Debt Management Policy

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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 (A) 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, anysavings from a refunding debt shall be significantly greaterthan the cost of Issuance. DEBT MANAGEMENT The Finance Department, in collaboration with the requesting department, will be responsible for managingand 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 Policy as modified from time to time. b) monitoring compliance with bond covenants; c) Implementing Internal control procedures to ensure the use of bond proceeds will be directed to the intended use; d) monitoring use of facilities financed with the Issued debt; e) continuing disclosure requirements; f) monitoring arbitrage compliance; and g) ongoing interactions with credit rating agencies Continuing Disclosure Asa critical component to the debt management aspect, on lune 21, 2016, the City Council adopted the "Municipal Securities Disclosure Policy & Procedures", which governs and outlines the initial and annual continuing disclosure process & requirements, Records Retention The Finance Department and other applicable departments, as may be necessary, will be responsible for maintaining the following documents for the term of debt issuance (including debt issued to refinance existing debt, If any),. a) a copy of the closing transcript (s) and other relevant documentation delivered to the City at or in connection with closing of the Issuance,- b) ssuance;b) a copy of all material documents relating to capital expenditures financed or refinanced by debt proceeds, including but not limited to: draw down requests and evidence as to the amount and date for each draw down, trustee requisitions, payment records, as well as documents relating to costs paid or reimbursed with the said proceeds Resolution No. 2018-009 Page 8 of 9