Page 59 - City of Bedford FY21 Budget

excluding capital outlays. And the Stormwater Fund shall maintain its goal of a working capital
amount equivalent to 90 days of operational expenses excluding capital outlays. If the working
capital falls below the desired level, the City will implement the necessary corrective action, in
which the City Manager or designee will submit a plan to restore its working capital to the
desired level within the time period specified in the plan. These steps include, but are not limited
to, enacting cost saving measures; increasing user charges; holding capital purchases; freezing
positions; and/or reducing the workforce.

CAPITAL AND DEBT SERVICE FUNDS. Revenues in the Debt Service Fund are stable,
based exclusively on property tax revenues and transfers from other funds. Reserves in the Debt
Service Fund are designed to provide funding between the date of issuance of new debt and the
time that property tax levies are adjusted to reflect the additional debt.

IX. DEBT MANAGEMENT

TYPES OF DEBT. Long-term debt will not be used for operating purposes, and the life of a
bond will not exceed the useful life of a project financed by that bond issue.

When appropriate, and as approved by Council Policy, self-supporting revenues will pay debt
services in lieu of tax revenues.

ANALYSIS OF FINANCING ALTERNATIVES. The City will explore all financing
alternatives in addition to long-term debt including leasing, grants and other aid, developer
contributions, and use of reserves of current monies.

DISCLOSURE. Full disclosure will be made to bond rating agencies and other users of
financial information. The City staff, with the assistance of financial advisors and bond counsel,
will prepare necessary materials for presentation to rating agencies, will aid in the production of
Offering Statements, and will take responsibility for the accuracy of all financial information
released.

FEDERAL REQUIREMENTS. The City will maintain procedures to comply with arbitrage
rebate and other Federal requirements.

DEBT STRUCTURE. The structure should approximate level debt service unless operational
matters dictate otherwise, or if market conditions indicate a potential savings could result from
modifying the level payment stream.

Consideration of market factors, such as the tax-exempt qualification, minimum tax alternative,
and so forth will be given during the structuring of long-term debt instruments.

DEBT ISSUANCE. The City will use a competitive bidding process in the sale of bonds unless
the nature of the issue warrants a negotiated bid. In situations where a competitive bidding
process is not elected, the City will publicly present the reasons why and the City will participate
with the financial advisor in the selection of the underwriter or direct purchaser.

35