§ 3.11.050. General Provisions.

The District will provide for a periodic review of its financial performance and review its performance relative to the financial policies outlined herein. These financial policies will be taken into account during the capital planning, budgeting, and rate-setting processes. Necessary appropriations for annual debt service requirements will be routinely included in the District's annual budget. The District will maintain proactive communication with the investment community, including rating agencies, credit enhancers and investors, to ensure future capital market access at the lowest possible interest rates.

The District's Debt Management Policy 8.5, the Reserve and Financial Benchmark Policy 8.3, the Capital Asset Policy 8.7, and the Investment Policy 8.4 are integrated into the decision-making framework utilized in the budgeting and capital improvement planning process. As such, the following principles outline the District's approach to debt management:

A.

The District will issue debt only in the case where there is an identified source of repayment. Debt will be issued to the extent that: (i) projected existing revenues are sufficient to pay for the proposed debt service together with all existing debt service covered by such existing revenues, or (ii) additional projected revenues have been identified as a source of repayment in an amount sufficient to pay for the proposed debt.

B.

The District will not issue debt to cover operating needs, unless specifically approved by the Board.

C.

Debt issuance for a capital project will not be considered unless such project has been incorporated into the District's adopted Capital Improvement Budget or as otherwise approved by the Board.

D.

Each proposal to issue debt will be accompanied by an analysis that demonstrates conformity to this Policy. This analysis will address the purpose for which the debt is issued and the proposed debt structure.

( Policy No. 8.5, 10-14-2014 ; Res. No. 2016-10-3 , § 1(Exh. A), 10-25-16; Res. No. 2018-8-3 , § 1(Exh. A, § 5), 8-28-2018)