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C - 23 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 <br />APPENDIX C <br />• Bond insurance is not available or not offered. <br />• Early structuring, investor outreach and other market participation by underwriters are desired. <br />• The par amount for the transaction is significantly larger than normal. <br />• Demand for the bonds by retail investors is expected to be high. <br />• Participation from DBE firms is required or desired. <br />Private Placement <br />From time to time the City may elect to privately place its debt. Such placement shall be considered <br />if this method is demonstrated to result in a cost savings to the City or other benefits relative to other <br />methods of debt issuance. <br />Derivative Products <br />Because of their complexity, unless otherwise amended, Derivative Products such as Interest Rate <br />Swaps, Inverse Floaters, and other hybrid securities are prohibited from the City of Pleasanton’s Debt <br />Management Policy. <br />10. DEBT ISSUANCE PRACTICES <br />The City shall have the responsibility to analyze outstanding bond issues for refunding opportunities <br />that may be presented by underwriting and/or financial advisory firms. <br />The City will consider the following issues when analyzing possible refunding opportunities: <br />A. Debt Service Savings <br />The City has established a minimum savings threshold goal of 3% of the refunded bond debt service <br />compared to the refunding bonds debt service unless there are other compelling reasons for <br />defeasance. The present value savings will be net of all costs related to the refinancing. The decision <br />to take savings on an upfront or deferred basis must be explicitly approved by the City Council. <br />B. Restructuring <br />The City will refund debt when in its best interest to do so. Refundings will include restructuring to meet <br />unanticipated revenue expectations, achieve cost savings, mitigate irregular debt service payments, <br />release reserve funds or remove unduly restrictive bond covenants. <br />C. Term of Refunding Issues <br />The City will refund bonds within the term of the originally issued debt. The City may also consider <br />shortening the term of the originally issued debt to realize greater savings. The remaining useful life of <br />the financed facility and the concept of inter generational equity should guide this decision. <br />D. Escrow Structuring