(A) The city may issue GO debt for capital or other properly approved projects.
(B) The city may issue revenue bonds to fund proprietary activities that generate adequate revenues from user fees to support operations and debt service requirements. The bonds will include written legal covenants which require that revenue sources are adequate to fund annual operating expenses and annual debt service requirements.
(C) Capital leases may be used to purchase buildings, equipment, furniture and fixtures. The term of any capital lease shall not exceed the useful life of the asset leased.
(D) Short-term borrowing may be utilized for interim financing or for other purposes as described below. The city will determine and utilize the least costly method for short-term borrowing subject to the following policies:
(1) Bond anticipation notes (BANs) may be issued for capital related cash purposes to reduce the debt service during the construction period of a project or to provide interim financing for a project. The BANs shall not mature more than five years from the date of issuance.
(2) Lines of credit shall be considered as an alternative to other short-term borrowing options.
(3) Other short-term debt may be used when such instruments provide an interest rate advantage or as interim financing.
(E) Lease financing and master lease obligations, including lease revenue bonds, may be considered as alternative financing structures.
(1984 Code, § 40.06) (Ord. O-07-19, passed 3-26-2019)