Legal Documents of Mountain City

The town's debt management activities will be conducted in order to maintain or receive the highest possible credit ratings. The mayor and town recorder, in conjunction with any financial professionals that the town may choose to engage, will be responsible for maintaining relationships and communicating with one (1) or more rating agencies.

The town will consider the use of credit enhancements on a case-by-case basis, evaluating the economic benefit versus cost for each case. Only when clearly demonstrable savings can be shown shall an enhancement be considered. The town will consider each of the following enhancements as alternatives by evaluating the cost and benefit of such enhancements:

1. Insurance. The town may purchase bond insurance when such purchase is deemed prudent and advantageous. The predominant determination shall be based on such insurance being less costly than the present value of the difference in the interest on insured bonds versus uninsured bonds.
2. Letters of credit. The town may enter into a Letter-Of-Credit (LOC) agreement when such an agreement is deemed prudent and advantageous. The town or its financial professionals, if any, may seek proposals from qualified banks or other qualified financial institutions pursuant to terms and conditions that are acceptable to the town. (Ord. #1269, Jan. 2012)