Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy C. DEBT STRUCTURING Debt will be designed in accordance with Florida Statutes and the usefu I life of the asset. It is structured for the shortest amortization period consistent with a fair allocation of costs to current and future beneficiaries or users, in order to achieve the lowest possible net cost and recapture credit capacity for future use. The Debt Management Team may determine that it is beneficial to the overall financing structure to capitalize interest costs to better match debt repayment with revenues and operations. The County will normally seek to structure debt with level debt service costs over the life of the debt. The "backloading" or "wrapping" of debt service costs will be considered when: 1. Natural disasters, extraordinary factors, or unanticipated external factors make the short- term cost of the debt prohibitive. 2. The benefits derived from the debt issuance can clearly be demonstrated to be greater in the future than in the present. 3. When such structuring is beneficial to the County's overall amortization schedule. 4. When such structuring will allow debt service to more closely match projected revenues during the early years of the project's operation. D. TAXABLE VERSUS TAX-EXEMPT DEBT The County will seek first to issue tax-exempt debt. Should the situation arise, the County will carefully consider whether issuing taxable debt is the best financing option for a proposed project or refinancing and develop a thorough understanding of the differences between the tax-exempt and taxable markets before proceeding with a planned sale. The Debt Management Team will conduct an analysis of how these differences would affect the overall financial plan and ability to manage its debt and consult appropriate counsel and advisors. 8