Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy C. CLOSING OF DEBT ISSUANCES 1. Tax Certificates The County's Bond Counsel, with assistance from the Debt Management Team and other professionals associated with the financing, shall prepare a Tax Certificate in connection with each debt issuance issued by the County, to be delivered at closing. The Tax Certificate shall serve as the operative document for purposes of establishing the County's reasonable expectations, as of the date of a debt issuance, as well as, provide a summary of the federal tax rules applicable to such issuance. The Debt Management Team, in consultation with the County's Bond Counsel, will review the Tax Certificate prepared for each of the County's debt issues prior to the closing of the issue. 2. Internal Revenue Service Form 8038-G - Tax-Exempt Bonds The County's Bond Counsel, with assistance from the Debt Management Team and other professionals associated with the financing, shall prepare an IRS Form 8038- G, Information Return for Tax-Exempt Governmental Obligations or similar form, in connection with each tax-exempt debt issuance issued by the County, which the Debt Management Team will review prior to closing. Each IRS Form 8038-G prepared for a tax-exempt debt issuance will be filed with the IRS no later than the 15th day of the second calendar month after the close of the calendar quarter in which the tax-exempt obligation to which such Form 8038-G relates is issued. All Form 8038-Gs shall be filed by the County's Bond Counsel with the IRS. D. USE OF DEBT PROCEEDS 1. Private Use The County will not knowingly take or permit to be taken any action which would cause any of its outstanding debt issuances to become "private activity bonds", as described on the next page. Generally, an issue of debt will be considered "private activity bonds" if more than ten percent of the proceeds of the debt are used directly or indirectly in any trade or business carried on by a private business user and more than ten percent of the debt service on the debt is directly or indirectly (1) secured by any interest in property used or to be used in any trade or business carried on by a private business user or payments in respect of property used or to be used in any trade or business carried on by a private business user, or (2) derived from payments made in respect of property used or to be used in any trade or business carried on by a private business user. The threshold drops to five percent if the private business use of the debt proceeds is unrelated to or disproportionate to the governmental use of the debt proceeds. 17