City of Morgan Hill Fiscal Years 2020- 2022 Recommended Operating and CIP Budgets

and limitations for proposed financings undertaken to implement the CIP. Debt issuance for capital projects should be incorporated into the CIP to be recommended for City Council approval. K. Policy Goals Related to Financial Planning Goals and Objectives The City is committed to long-term financial planning, maintaining appropriate reserve levels, and employing prudent practices in governance, management, and budget administration. The City intends to issue debt for the purposes stated in this Policy and, in doing so, to implement policy decisions incorporated in the City’s long-term financial plans and its operating budget. L. Initial and Continuing Disclosure Compliance 1. Review and Approval of Official Statements a. The City’s Treasurer and Finance Director shall review any Official Statement prepared in connection with any debt issuance by the City in order to ensure there are no misstatements or omissions of material information in any sections that contain information prepared by the City. b. In connection with review of the Fiscal Policies (continued)

consulted so that the Official Statement will include all “material” information (as defined for purposes of federal securities law). c. As part of the review process, the City Treasurer and/or Finance Director shall submit all Official Statements to the City Council for approval. d. The approval of a Preliminary Official Statement by the City Council shall be docketed as a new business matter and shall not be approved as a consent item. The City Council shall undertake such review as deemed necessary by the City Council, following consultation with the City Treasurer and/or Finance Director, to fulfill the City Council’s responsibilities under applicable federal and state securities laws. In this regard, the City Treasurer and/or Finance Director shall consult with the City’s disclosure counsel to the extent the City Treasurer and/or Finance Director consider appropriate. e. Under the continuing disclosure undertakings that the City has entered into in connection with its debt offerings, the City is required to file annual reports with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (“EMMA”) system in accordance with such undertakings. Such annual reports

Official Statement, the City Treasurer and Finance Director may consult with third parties, including outside professionals assisting the City, and all members of City staff, to the extent that the City Treasurer and Finance Director conclude they should be

50 GENERAL INFORMATION