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Bond and Note Retirement <br />The City will retire all debt on or before the maturity date. <br /> <br />Debt limitations compliance <br />The City will fully comply with all statutory debt limitations imposed by the Ohio Revised Code <br />or City ordinance, and those developed by the Administration <br /> <br />Arbitrage compliance <br />The City will fully comply with all arbitrage rebate requirements of the federal tax code and <br />Internal Revenue Service regulations, and will perform arbitrage rebate calculations for each <br />issue subject to rebate, on an annual basis. All necessary rebates will be filed and paid when due. <br /> <br />Reserve millage <br />The City's goal will be to maintain a 1 mill inside millage reserve for emergencies. Based on <br />1997 assessed valuation figures, this mounts to approximately $675,000 of annual debt service <br />capacity. <br /> <br />Bond retirement fund <br />The City will maintain a segregated bond retirement fund to provide for principal and interest <br />payment on its debt. The City's goal will be to maintain a fund balance adequate to meet current <br />obligations. <br /> <br />Debt service reserve funds <br />The City will maintain a segregated debt service reserve funds for revenue issues as required by <br />trust and/or indenture a~eements. <br /> <br />Refunding criteria <br />The City will monitor its debt portfolio for refunding opportunities on a regular basis. <br />will consider refundings for various reasons, including to: <br /> 1. Achieve interest rate savings in a declining interest rate environment, <br /> 2. Update covenants on outstanding debt which impair efficient operations, <br /> 3. Restructure the pattern of debt service associated with outstanding bond issues; <br /> and <br /> 4. Alter bond characteristics, such as call provisions or payment dates, on existing <br /> debt. <br /> <br />The City <br /> <br />If the City pursues a refinancing for interest rate savings, it should initiate the transaction (select <br />method of sale, engage outside service providers and begin Preliminary Official Statement <br />preparation) when the present value savings exceed 2% of the par amount of the outstanding <br />issue (inclusive of all costs of issuance). Generally, the City will execute the refunding once <br />present value savings exceed 3% of the outstanding par. <br /> <br />City of Lakewood, Ohio - Debt Policies Page 4 <br /> <br /> <br />