Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy B. INVESTMENT OF BOND AND NOTE PROCEEDS All proceeds of debt incurred by the County, other than conduit debt obligations, are invested as part of the County's consolidated cash pool unless otherwise specified by the bond covenants. Investments shall be consistent with those authorized by existing County and state law and by the Board-approved Investment Policy. C. USE OF BOND AND NOTE PROCEEDS All proceeds will be used as described in the resolution authorizing the issuance. In the event funds are determined, by the County, to not be needed for the purpose they were issued, such funds shall be transferred to the debt service fund to be applied to payment or prepayment of the bond or note unless otherwise authorized in the issuance resolution. D. COSTS AND FEES All costs and fees related to issuance of bonds, except conduit bonds, are paid out of bond proceeds unless otherwise determined by the Debt Management Team. E. METHOD OF SALE The Debt Management Team will prepare a method of bond sale for Board consideration based on a thorough analysis of the relevant rating, security, structure and other factors pertaining to the proposed bond issue. The County's policy is to sell public debt using the method of sale expected to achieve the best result, taking in to consideration all short-term and long-term implications. This analysis and selection will be undertaken with the advice of the Financial Advisor. Due to the inherent conflict of interest, the Board shall not use a broker-dealer or potential Underwriter to assist in the method of bond sale selection unless that firm has agreed not to underwrite that transaction. There are two methods to sell bonds. 1. Competitive Sale In a Competitive Sale, the County conducts all tasks necessary to offer the bonds for sale and may use the assistance of attorneys, its Financial Advisor or other consultants. The bonds are awarded to the Underwriter that has submitted the best price (i.e., the lowest true interest cost bid). Once the bid is awarded, pricing and major structural aspects of the bonds are locked in regardless of the success or failure of the Underwriter to sell the bonds to investors. If the County determines that the bids are unsatisfactory, it may enter into a negotiated transaction for sale of the securities with the Board's approval. Bond Counsel and Disclosure Counsel will also be consulted. 15