11 ATTACHMENT 1, EXHIBIT A - Laserfiche WebLink

C - 19 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 APPENDIX C D. Maximum Annual Debt Service (“MADS”) Concerning revenue bonds, the MADS for any given year must not exceed a level at which the City’s net revenues are less than one and a quarter times (1.25x) the total debt service within any year unless allowed by existing bond covenants. E. Additional Bonds Test Any new debt issuance must not cause the City’s debt service to exceed the level at which the net revenues are less than one and a quarter times (1.25x) the maximum annual principal and interest (debt service) for the aggregate outstanding senior lien bonds including the debt service for the new issuance unless allowed by existing bond covenants. F. Debt Service Structure Debt issuance shall be planned to achieve relatively rapid repayment of debt while still matching debt service to the useful life of facilities. The City will amortize its debt within each lien to achieve overall level debt service or may utilize more accelerated repayment schedules after giving consideration to bonding capacity constraints. The City shall avoid the use of bullet or balloon maturities except in those instances where these maturities achieve one of the City’s stated goals, such as minimizing annual debt service or leveling annual existing debt service, among others. G. Call Provisions In general, the City’s securities will include a call feature, which is no later than ten (10) years from the date of delivery of the bonds. The City will avoid the sale of non-callable bonds absent careful evaluation by the City with respect to the value of the call option. If the City were to issue taxable bonds, the City will carefully consider the financial impacts of a 10-year call, a make-whole call, or non-callable debt. H. Maximum Repayment Ratio The maximum repayment ratio, where total future debt service payments are divided by the principal of the bonds issued, shall be within three to one for each series of bonds and for each authorization. I. Original Issue Discount & Deep Discount Bonds An original issue discount and deep discount bonds will be permitted only if the City determines that such discount results in a lower true interest cost on the bonds and that the use of an original issue discount or deep discount bonds will not materially reduce the value of the bonds’ call provisions and adversely affect the project identified by the bond documents.