Legal Documents of Dandridge

This debt management policy (the "debt policy") is a written guideline with parameters that affect the amount and type of debt that can be issued by the Town of Dandridge, Tennessee (the "town"), the issuance process and the management of the town's debt. The purpose of this debt policy is to improve the quality of management and legislative decisions and to provide justification for the structure of debt issuances consistent with the debt policy's goals while demonstrating a commitment to long-term capital planning. It is also the intent of the town that this debt policy will signal to credit rating agencies, investors and the capital markets that the town is well managed and will always be prepared to meet its obligations in a timely manner. This debt policy fulfills the requirements of the State of Tennessee regarding the adoption of a formal debt management policy on or before January 1, 2012.

This debt policy provides guidelines for the town to manage its debt and related annual costs within both current and projected available resources while promoting understanding and transparency for our citizens, taxpayers, ratepayers, businesses, investors and other interested parties.

In managing its debt, it is the town's policy to:

1. Achieve the lowest cost of capital within acceptable risk parameters.
2. Maintain or improve credit ratings.
3. Assure reasonable cost access to the capital markets.
4. Preserve financial and management flexibility.
5. Manage interest rate risk exposure within acceptable risk parameters. (Ord. #11/12-08, Nov. 2011)