Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy 2. Monitoring Events Which May Trigger Continuing Disclosure Filing Periodically, the Director of Finance shall review the list of enumerated events in each active continuing disclosure undertaking, to maintain an awareness of the circumstances which may trigger a filing obligation, including the time frame within which such a filing would be required to be made. The Director of Finance shall use his or her best efforts to comply with the ongoing filing requirements of all such undertakings. The Director of Finance may employ the services of an outside dissemination agent to assist with the foregoing responsibilities to transmit the annual report to the Municipal Securities Rulemaking Board (MSRB) EMMA system. There are two enumerated events which will be included in Continuing Disclosure Agreements made upon the issuance of public offerings which close on or after February 27, 2019. Those enumerated events include the following: a. lncurrence of a financial obligation of the issuer or obligated person, if material (a new obligation event), or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or obligated person, any of which affect security holders, if material (a revised obligation event), and b. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties (a financial distress event). (Note the lack of a materiality standard in this section b when compared to section a above.) 3. Materiality, Financial Obligations and Financial Difficulties Certain enumerated events in The Rule require a materiality determination to be made by the County. In making such a determination of materiality, the Director of Finance should ask whether the information would be important to a reasonable investor making a decision of buy or sell bonds (for example, consider what is pledged, what is the priority, what is the size of the borrowing relative to the County's budget, what events of defaults were granted, what remedies were granted, etc.). The Director of Finance should also consult Disclosure Counsel. Once these two new undertakings (sections a and b below) are in place contractually, as a practical matter, the Director of Finance should do the following, in addition to monitoring the list of reportable events, as has been the case for many years: a. Inventory all existing financial obligations and planned borrowings on a spreadsheet as a living and breathing document, as outlined below, 29