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Debt Management Policy 210.08
Johnson County Community College
Series: 200 Administrative Services
Section: Accounting and Auditing

It shall be the policy of Johnson County Community College to manage its financial affairs in a manner which will help secure and maintain high quality bond ratings. The objective of this Policy is to maintain the College’s ability to incur debt as necessary, at minimal interest rates, without endangering the College’s ability to finance essential services. Recognizing that there are various debt financing methods available to the College, alternative sources of capital funding should be explored before debt is issued.

College personnel and the College’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding or refinancing outstanding debt.  As a general rule, the present value savings of a particular refunding should equal or exceed 3% of the refunded maturities.

However, situations may arise where the College may elect to proceed with a refunding at a lower present value savings, such as debt restructuring, or to provide for future borrowings.

As a general rule, refinancing or restructuring will not be used as a means to extend maturity dates of the original debt.

Date of Adoption: 07/07/1994
Revised: 02/16/2017 (Previous versions: Debt Service Policy 210.08 and Debt Refunding Policy 210.08a, adopted 01/27/2011)