Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy 2. Overview The County routinely reviews, and will continue to review, third-party uses of its debt- financed facilities for potential "private business use". The Debt Management Team shall be responsible for such routine reviews of third-party use. In addition, the County will continue to consult regularly with its Bond Counsel regarding the applicable federal tax limitations imposed on the County's outstanding debt issuances and whether arrangements with third parties give rise to private business use of the financed projects. In the event the County enters into any arrangement which gives rise to private business use, the County will consult its Bond Counsel regarding the arrangement and whether such arrangement impacts the tax-exempt status of the County's outstanding debt, as applicable. The County Attorney shall upon request made by the Finance Department or OFM review Service Contracts, in consultation with Bond Counsel leases and subleases, naming rights agreements, and joint venture and partnership agreements with respect to potential private business use. The private business use arrangements to be monitored by the County include, but are not limited to, the following: a. Management or Other Service Contracts In the event the County enters into a management contract, service agreement, operating agreement or license (a Service Contract) with a third-party the County will evaluate whether such arrangement results in private business use. After initial review by the County Attorney, the Debt Management Team shall monitor all service contracts that involve the use of debt-financed property for compliance. It is the County's intent to structure all Service Contracts impacting debt-financed property so as to satisfy one of the private business use safe harbors set forth (1) IRS Revenue Procedure 2017-13 (the "Current Guidelines"), (2) to the extent applicable, IRS Revenue Procedure 97-13, 1997 1 C.B. 632, as modified by IRS Revenue Procedure 2001-39, 2001-1 C.B. 38 and amplified by IRS Notice 2014- 67, 2014-46 I.RB . 822 (10/24/2014) (the "Prior Guidelines"), or (3) any successor to Revenue Procedure 2017-13. Instead of complying with the Current Guidelines, management and service contracts entered before August 18, 2019, and not materially modified or extended after that date (except pursuant to a renewal option under which either party has a legally enforceable right to renew the contract) may comply with Prior Guidelines. If the County enters into a Service Contract that does not satisfy the safe harbors set forth in Revenue Procedure 2017-13, the County will consult with its Bond Counsel to assess the impact, if any, that the noncompliant Service Contract has on the tax status of the County's outstanding debt. 18