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Policy o The City will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues. The City shall not use debt for the purchase of vehicles and other rolling stock o When the City finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the expected useful life of the project o The City will try to keep the average maturity of general obligation bonds at or below ten years o The City will strive to keep the direct debt per capita and direct debt as a percent of estimated market value at or below the median set out by the credit rating agencies o Total general obligation debt shall not exceed two percent of the market value of taxable property as required by State law o The City shall not use debt for current operations o The City will maintain good communications about its financial condition with credit rating agencies o The City will follow a policy of full disclosure on every financial report and bond prospectus o Refinancing or bond refunding will only be undertaken when there is significant economic advantage to the City, and when it does not conflict with other fiscal or credit policies o The maintenance of the best possible credit rating shall be a major factor in all financial decisions. For the purposes of issuing debt, bond rating categories shall be used as a means of assessing the City's financial condition. Implementation The debt management section of this approved Budget and Capital Improvement Program demonstrate compliance toward achieving the city's debt policy. The motion for the adoption of the foregoing resolution was duly seconded by Member Pust and upon a vote being taken thereon, the following voted in favor thereof: Roe, Kough, Ihlan, Pust and Klausing and the following voted against the same: none WHEREUPON, said resolution was declared duly passed and adopted.