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Appendix A - <br />City of Roseville Debt Policy <br />Purpose <br />The purpose of the City of Roseville's Debt Policy is to: <br />1) To define the role of debt in the City's total financial strategy so as to avoid using debt in a <br />way that wealcens other parts of the financial structure of the City. <br />2) To provide for limits on debt to avoid potential pitfalls in servicing the debt. <br />3) To maintain the best possible Moody's and Standard and Poor's credit rating. <br />General Policy Statements <br />a) The City will co ne long-term borrowing to capital improvements or projects that cannot <br />be financed from current revenues. The City shall not use debt for the purchase of <br />vehicles and other rolling stocic. <br />b) When the City finances capital projects by issuing bonds, it will pay bacic the bonds <br />within a period not to exceed the expected useful life of the project. <br />c) The City will try to lceep the average maturity of general obligation bonds at or below ten <br />years. <br />d) The City will strive to lceep the direct debt per capita and direct debt as a percent of <br />estimated marlcet value at or below the median set out by the credit rating agencies. <br />e) Total general obligation debt shall not exceed two percent of the marlcet value of taxable <br />property as called for by State law. <br />� The City shall not use long-term debt for current operations. <br />g) The City will maintain good communications about its financial condition with credit <br />rating agencies. <br />h) The City will follow a policy of full disclosure on every financial report and bond <br />prospectus. <br />i) Refinancing or bond refunding will only be undertalcen when there is significant economic <br />advantage to the City, and when it does not conflict with other fiscal or credit policies. <br />j) The maintenance of the best possible credit rating shall be a major factor in all financial <br />decisions. <br />� <br />� <br />