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Regular City Council Meeting Monday, June 29, 2009 Page 23 a. Discussion on Policy and Procedures related to the Issuance of Conduit Debt Finance Director Chris Miller reviewed a proposed procedure and policy for ap- plication to the City of Roseville for private activity revenue bond financing (con- duit financing) for tax exempt bond issues for the benefit of housing and long- term care facilities. Mr. Miller noted that this was staffls and the city's bond counsel's response to previous City Council discussions expressing an interest in amore formal comprehensive policy; and a comparison of the City's existing pro- cedures compared to those of other communities. Mr. Miller advised that the majority of the proposed policy affirmed historical and current practice, but takes it to a higher level, and referenced page three of the draft for addressing application fees beyond those recouped for administrative costs, and taking into consideration ongoing financial reporting costs required; and provided extra transparency measures to ensure applicants were continuing to report to regulatory agencies and making applicable findings as required by Stat- ute. Mr. Miller further noted that some cities (i.e., St. Louis Park) were recouping ad- ditional fees for specific application with which they were dedicating funding to meet other community housing needs having no consistent revenue source. Mr. Miller noted that Councilmember Roe had already alerted staff to the lack of procedure in the draft of host city approval, when another host city is the entity. Councilmember Roe clarified for staff that he was considering entities outside Roseville who do a project, but come to the City of Roseville with the bond issue request; noting that many communities (i.e., Falcon Heights) encouraged that to receive the administrative fees as an additional revenue source. Councilmember Roe opined that those type of policy issues were his intent for further discussion; whether the City would accept applications for anything, anywhere, or if there was a threshold in issuing bonds for projects outside the community For the benefit of the public, Mayor Klausing clarified that this discussion was only related to conduit financing, not City bond issues for the City to borrow funds. Discussion included how conduit bonding requests impacted the City's bond rate, with staff continually monitoring potential bonding needs short and long-term to avoid adverse impacts on the City's bond rate. Councilmember Ihlan opined that the policy discussion should be based on public benefit for such financing, which was in the nature of a subsidy allowing for bet- ter financing rates than available in the marketplace; and as addressed on page 1, paragraph 4, consideration of what public purposes would be supported, similar to criteria used for tax increment financing and similar subsidies. Councilmember