2022 12 20 City Council Agenda Packet

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CITY OF ATHENS, TENNESSEE
DEBT MANAGEMENT POLICY

I. INTRODUCTORY STATEMENT

In managing its Debt (defined herein as tax-exempt/taxable bonds, capital outlay notes, other
notes, capital leases, interfund loans or notes and loan agreements); it is the City's policy to:

> Achieve the lowest cost of capital within acceptable risk parameters

> Maintain or improve credit ratings

> Assure reasonable cost access to the capital markets

> Preserve financial and management flexibility

> Manage interest rate risk exposure within acceptable risk parameters

II. GOALS AND OBJECTIVES

Debt policies and procedures are tools that ensure that financial resources are adequate to
meet the City's long-term capital planning objectives. In addition, the Debt Management Policy
(the "Debt Policy") helps to ensure that financings undertaken by the City have certain clear,
objective standards which allow the City to protect its financial resources in order to meet its
long-term capital needs.

The Debt Policy formally establishes parameters for issuing debt and managing a debt portfolio
which considers the City's specific capital improvement needs; ability to repay financial
obligations; and, existing legal, economic, and financial market conditions. Specifically, the
policies outlined in this document are intended to assist in the following:

> To guide the City in policy and debt issuance decisions

> To maintain appropriate capital assets for present and future needs

> To promote sound financial management

> To protect the City's credit rating

> To ensure the City's debt is issued legally under applicable state and federal laws

> To promote cooperation and coordination with other parties in the financing

> To evaluate debt issuance options

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Debt Management Policy Page 2
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