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A. The city will not fund current operations from the proceeds of borrowed funds.

B. The city will consider short-term borrowing or lease/purchase contracts for financing major operating capital equipment when the finance director, along with the city’s financial advisor, determines that this is in the city’s best financial interest. Lease/purchase decisions should have the concurrence of the appropriate operating manager.

C. Short-term debt should not exceed five percent of annual revenue, and short-term debt should not exceed 20 percent of total debt.

D. When the city finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the project.

E. Target debt ratios will be annually calculated and included in the review of financial trends.

F. Annual general obligation debt service should not exceed 20 percent of annual general fund revenue.

G. The city will maintain good communications about its financial condition with bond and credit institutions.

H. The city will follow a policy of full disclosure in every annual financial statement and bond official statement.

I. The city will avoid borrowing on tax anticipation and maintain an adequate fund balance. (Ord. 02-33 § 2, 2002)