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EXHIBIT A <br /> <br />City of LakewOod, Ohio <br /> Debt Policies <br /> <br />Debt Issuance Policies <br />· Reliance on current revenues to finance operations <br /> The City will use current revenues to meet daily operations and working capital needs. The City <br /> will not issue any debt to fund its operations. <br /> <br /> Reliance on current revenues vs. debt to finance capital improvements <br /> The City goal is to use current revenues to pay for short-term capital projects, repair and <br /> maintenance items and to reserve, where possible, long-term debt for capital improvements with <br /> useful lives of ten years or more. <br /> <br /> Promote economic development <br /> The City will monitor opportunities to foster economic development, with the primary goals to <br /> create high paying jobs and increase the property tax base, through the use of its debt capacity. <br /> This effort may include the consideration of tax increment financings, assisting with industrial <br /> revenue bonds and the use of special assessment debt. It is the City's intent to focus such <br /> economic development efforts in high need redevelopment areas. <br /> <br /> Use of outside funding sources for capital projects <br /> The City will pursue all known outside funding sources, for example local, state or federal grant <br /> or low interest loan programs, before issuing debt. Where outside funding is available only on a <br /> matching basis, the City will attempt to maximize leverage its available cash and debt resources. <br /> <br /> Parameters for annual note issues <br /> Bond anticipation notes may be issued only as necessary during the construction or acquisition <br /> phases of capital projects or to finance on-going capital needs of the City that exceed current <br /> revenue sources. Notes may be renewed and remain outstanding until the projects are complete <br /> and final costs are known or can be reasonably estimated. At that time, bonds will be issued to <br /> retire the notes, unless market conditions warrant that the debt remain in notes. For amounts <br /> remaining in notes, the City's goal is to annually pay down the maximum amount allowable <br /> within the budget, but not less than 10% of the outstanding note balance. <br /> <br /> Selection of outside service providers for debt issues <br /> All professional service providers (underwriters, financial advisors, bond counsel, underwriter's <br /> counsel, bond registrars, paying agents, trustees, escrow agents, bond insurers, etc.) selected in <br /> connection with the City's debt issues will be selected according to the City's procurement <br /> policies. In most cases this will require a request for proposal process. The objectives of the <br /> process will be to: <br /> · Promote competition <br /> · Be as objective as possible <br /> · Incorporate clear and rational selection criteria <br /> · Be independent of political influence <br /> · Be perceived as fair by the respondents <br /> · Result in a cost-effective transaction <br /> · ' Result in the selection of the most qualified firm(s) <br /> <br />City of Lakewood, OMo - Debt Policies Page 1 <br /> <br /> <br />