7C, Conduit Debt Policies - Laserfiche WebLink

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ltm-_ ,-----ARQEN HILLS MEMORANDUM DATE: September 10, 2009 TO: Honorable Mayor and City Council Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director SUBJECT: Conduit Debt Policies Background: The City has been approached on various occasions to issue Conduit Debt for organizations such as Presbyterian Homes. It is anticipated that Northwestern College is also going to approach the City on this subject. Each instance has been handled by the City Council on a case by case basis, but we have had no policy or application materials for these requests. Discussion: The Financial Planning and Analysis Committee has developed a "Private Activity Revenue Bond Financing" procedure which includes an application process and fees. City Bond Counsel has reviewed these procedures and applications, and they are very similar to what other municipalities in the Twin Cities metropolitan area are using. This procedure will provide a process whereby the applicant provides the City all the data needed about the offering and the fees that are to be paid. Another issue is Post -Issuance Compliance. The Financial Planning and Analysis Committee has developed a "Post -Issuance Compliance Policy" to comply with the Internal Revenue Code regulations. A set of procedures has also been developed to implement the compliance policy. Bond Counsel has also reviewed this policy and procedures. Staff Recommendation: Staff recommends a motion to approve the Arden Hills Private Activity Revenue Bond Financing Procedures effective September 14, 2009. Staff recommends a motion to approve the Arden Hills Post -Issuance Debt Compliance Policy effective September 14, 2009.