Page 367 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

F. Debt Structure - The Town shall structure its debt payment schedules for general purpose
debt to ensure level principal repayment schedules. The Town shall not assume any debt
with "balloon' repayment schedules which consist of low annual payments and one large
payment of the balance due at the end of the term. While balloon payment structures
minimize the size of debt payments during the period, they force a large funding
requirement on the budget of the final year. Given the uncertainties of the future, level
payment schedules improve budget planning and financial management.

G. Sale Process - The Town shall use a competitive bidding process in the sale of debt unless
the nature of the issue warrants a negotiated bid. The Town shall award bonds based on a
true interest cost (TIC) basis as long as the financial advisor agrees that the TIC basis can
satisfactorily determine the lowest and best bid.

H. Bond Rating Agencies Presentations - Full disclosure of operations and open lines of
communication shall be made to the bond rating agencies. Town staff, with assistance of
financial advisors, shall prepare the necessary materials and presentation to the bond
rating agencies.

I. Continuing Disclosure - The Town is committed to continuing disclosure of financial and
pertinent credit information relevant to the Town's outstanding securities.

J. Debt Refunding - Town staff and the financial advisor shall monitor the municipal bond
market for opportunities to obtain interest savings by refunding outstanding debt. As a
general rule, the present value savings of a particular refunding should exceed 3.5% of the
refunded maturities.

VIII. INTERGOVERNMENTAL RELATIONSHIPS

The Town will pursue coordinated efforts with other governmental agencies to achieve
common policy objectives, share the cost of providing government services on an equitable
basis, and support favorable legislation at the State and Federal levels.

A. Inter-local Cooperation in Delivering Services - In order to promote the effective and
efficient delivery of services, the Town shall actively seek to work with other local
jurisdictions in joint purchasing consortia, sharing facilities, sharing equitably the costs of
service delivery, and developing joint programs to improve service to its citizens.

B. Legislative Program - The Town shall cooperate with other jurisdictions to actively oppose
any State or Federal regulation or proposal that mandates additional Town programs or
services and does not provide the funding to implement them. Conversely, as appropriate,
the Town shall support legislative initiatives that provide more funds for priority local
programs.

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