Sarasota County Debt Management Policy - Resolution 2021-184

Sarasota County Debt Management Policy C. CAPITAL PLANNING To enhance creditworthiness and prudent financial management, the County is committed to systematic capital planning, coordinating intergovernmental cooperation, and long-term financial planning. Evidence of this commitment to systematic capital planning is demonstrated through adoption and periodic adjustment of a Comprehensive Plan pursuant to Chapter 163, Florida Statutes, and the annual adoption of a five-year CIP. D. DEBT LIMITS The County will keep outstanding debt within the limits prescribed by State Statute and County Charter and at levels consistent with its creditworthiness, best practices, needs and affordability objectives. 111. DEBT STRUCTURE A. DEBT STRUCTURE Debt will be structured to achieve the lowest possible net cost to the County given prevailing market conditions, the urgency of capital funding needs, and the nature and type of security to be provided. To the extent possible, the County will design the repayment of its overall debt to rapidly recapture its credit capacity for future use. B. TYPES OF DEBT INSTRUMENTS AND PLEDGES/SECURITY The County shall utilize the following types of security or any variation or combination of each when it incurs debt. The security shall be based on the revenue stream pledged to service the debt and the nature of the Capital Projects to be financed. 1. Bonds are a long-term debt security issued by a government at a fixed interest rate to finance capital projects. a. General Obligation (GO) Bonds are long-term debt instruments secured by the County's ability to levy ad valorem taxes on real and personal property within the County. The full faith and credit of the County is the pledge of the general taxing powers for the payment of this obligation. In accordance with Florida Statutes, GO Bonds must be approved by a majority of those voting on a bond proposal in a bond referendum unless they mature in not more than a year or meet the statutory refunding exception. b. Non-Self-Supporting Revenue Bonds are long-term debt instruments secured by dedicated non~ad valorem revenues derived from sources other than Enterprise Revenues such as half-cent sales tax, tourist development taxes, and other special taxes. 6