Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy 8. Establishment of Refunding Escrows and Trustee Responsibilities The County will deposit debt proceeds, and any other amounts, to be used to advance refund County debt into one or more separate escrow trust accounts established with the trustee or escrow agent selected for the transaction. Working with the Bond Counsel, and in accordance with the documentation prepared for the refunding transaction, the County will impose primary responsibility for initiating actions required to be taken with respect to the refunding escrow (including the reinvestment of amounts within the escrow and disbursing funds from the escrow) on the trustee or escrow agent. In the event of an omission on the part of the trustee or escrow agent, an error in the documentation or procedures establishing the escrow, or investment to be acquired as part of the refunding escrow is not available for purchase, the Debt Management Team will timely consult with the Bond Counsel, as applicable, to determine the impact, if any, on the status of the bond issue and actions to be undertaken by the County to ensure the continuing status of the obligations. 9. Acquiring Investments for Refunding Escrows It is the policy of the County to maximize the investment return on all investments acquired with bond proceeds and to acquire such investments at fair market value. When funding deposits for refunding escrows using debt proceeds, it is the County's policy to acquire SLGS or securities purchased on the open market in accordance with the terms of the County's bond documents. In the event the County chooses to fund an advance refunding escrow using securities purchased on the open market, the County will, if possible, solicit bids from providers of qualifying securities in accordance with the limitations described in the "3-Bid" safe harbors set forth in Treasury Regulations Section 1.148-5(d)(6). 10.lnterest Rate Hedges The County, through the Debt Management Team, will engage a third party Financial Advisor for all interest rate hedges entered into by the County, irrespective of whether any such hedge is acquired through a direct negotiation with the provider or procured through a bidding process. In all cases, the County will obtain appropriate certifications from its Financial Advisor and/or the provider to establish the fair market value of the product. The County will consult with its Bond Counsel with respect to all interest rate hedging transactions related to an outstanding or prospective debt issuance prior to the date on which the interest rate hedging transaction is entered into. 22