Page 394 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

E. Affordability Targets - The Town shall use an objective multi-year analytical approach to
determine whether it can afford to assume new general purpose debt beyond what it retires
each year. This process shall compare generally accepted standards of affordability to the
current values for the Town. The process shall also examine the direct costs and benefits of the
proposed expenditures. The decision on whether or not to assume new debt shall be based on
these costs and benefits and on the Town's ability to "afford” new debt as determined by the
aforementioned standards. The Town shall strive to achieve and/or maintain these standards at
a low to moderate classification.

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.

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