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<br /> <br /> <br /> <br /> <br /> <br />Exhibit 1 <br /> <br />Excerpt from City Debt Policies <br /> <br />CF <br />ONDUIT INANCINGS <br />Conduit financings are financings that the City provides for the benefit of non- <br /> <br />1. <br />governmental entities to allow those non-governmental entities to obtain low cost, <br />tax-exempt financing. Conduit financings are not secured by any revenues or assets <br />of the City except revenues and assets <br />provided by the non-governmental entities that benefit <br />from the conduit financings. <br /> <br /> <br />2.The United States Internal Revenue Code substantially limits the ability of the City to provide <br />conduit financing; conduit financings are only available for small manufacturing facilities, facilities <br />used by qualified 501(c)(3) organizations, certain kinds of low income housing projects, and other <br />projects that can be financed with “qualified bonds” as defined in the Internal Revenue Code. <br /> <br />3.Recognizing that the City is able to issue debt for broad purposes, it may be appropriate to enter <br />into a conduit financing on behalf of another party when the City Council determines that the <br />proposed project will provide a general benefit to City residents and/or the City economy. <br /> <br /> <br />4.Conduit financing will be considered only when a project is consistent with the city’s overall <br />service and policy objectives. <br /> <br /> <br />5.The City should not incur any moral or financial obligation under a conduit borrowing. <br /> <br /> <br />6.The City will only consider conduit financings that will insulate the City from any credit risk. <br /> <br /> <br />7.Any financing issued through the City must qualify for an investment grade rating by one of the <br />nationally recognized statistical rating agencies or provide alternative credit enhancement from a <br />third party satisfactory to the City or a corporate guaranty if the corporation carries an investment <br />grade rating. <br /> <br /> <br />8.All expenses related to conduit financing will be borne by the third-party applicant for whom the <br />debt is being issued. <br /> <br /> <br />9.The City will establish review procedures of the requesting party for projects, including adherence <br />to public contracting requirements, development of a financial feasibility study of the project, and <br />submission of annual financial statements to ensure the ability to repay the debt. <br /> <br /> <br /> <br /> <br /> <br /> <br />