FIN 2025-06-23 Item 1A - Resolutions - City Investment and Debt Policies

Browse Search

Fiscal Agent —A fiscal agent may be used to provide accurate and timely securities processing and payment to bondholders. As provided under RCW 43.80, the City will work with the Fiscal Agent that is determined by the State. Section V. Transaction -Specific Policies For any City project planned to be funded through debt, an analysis will be done to consider: (a) other potential ways to finance the project; (b) future operating and maintenance costs, including debt repayment; (c) expected cash inflows that could help offset the amount borrowed; and (d) anticipated cash outflows for construction or equipment to ensure compliance with arbitrage rules. Method of Sale The Finance Director, in consultation with the City's municipal advisor, will determine the method of sale best suited for each issue of debt (competitive sale, negotiated sale, or bank/direct placement). The type of debt to be issued and manners of the sale will be submitted to the City Council for approval in the bond ordinance. The bond ordinance will authorize the issuance and sale of debt, and, as applicable, set forth the delegation requirements provided for in RCW 39.46.040 when appointing a designated representative, the City Finance Director or their designee, to approve the final terms of the debt. Bond Insurance For each issue, the City, in conjunction with its municipal advisor, will evaluate the costs and benefits of bond insurance or other credit enhancements. Any credit enhancement purchases by the City must be competitively procured in a manner deemed reasonable by the City Finance Director. Bond Ballot Measures Prior to any unlimited tax general obligation bond (described below) proposition being placed before the voters, the capital project under consideration must, unless otherwise justified and have found to be in the best interest of the City, have been included in the City's Capital Facilities Plan. The source of funds for the project should reflect the intended use of bond financing. Investor and Rating Agency Relations The City will maintain good communications with bond rating agencies and investors about its fiscal condition. The City will provide full, accurate and complete disclosure on financial reports and in disclosure documents to comply with the anti -fraud requirements of Securities Laws. Short-term debt The City may use short-term debt, defined as a period not to exceed three years, to fund cash flow needs, which may be caused by a delay in receipting tax revenues or issuing long-term debt. The City will not issue short-term debt for current operations, except in the event of an emergency. The City may issue interfund loans rather than issuing outside debt to meet short-term cash flow needs. The issuance of an interfund loan will be permissible only after an analysis of the loaning fund(s) indicate(s) that excess funds are available, and the use of these funds will not impact the loaning fund(s) current City of Tukwila Debt Policy Page 6 of 10 30