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• Market timing is important, such as for refunding's. • Issuer has lower or weakening credit rating. • Issuer is not well known to investors. • Sale and marketing of the bonds will require complex explanations about the issuer's projects, media coverage, political structure, political support, funding, or credit quality. • The bond type and/or structural features are non-standard, such as for a forward delivery bond sale, issuance of variable rate bonds, or where there is the use of derivative products. • Bond insurance is not available or not offered. • Early structuring, investor outreach and other market participation by underwriters are desired. • The par amount for the transaction is significantly larger than normal. • Demand for the bonds by retail investors is expected to be high. • Participation from DBE firms is required or desired. Private Placement From time to time the City may elect to privately place its debt. Such placement shall be considered if this method is demonstrated to result in a cost savings to the City or other benefits relative to other methods of debt issuance. Derivative Products: Because of their complexity, unless otherwise amended, Derivative Products such as Interest Rate Swaps, Inverse Floaters, and other hybrid securities are prohibited from the City of Pleasanton's Debt Management Policy. 10. REFINANCING OUTSTANDING DEBT The City shall have the responsibility to analyze outstanding bond issues for refunding opportunities that may be presented by underwriting and/or financial advisory firms. The City will consider the following issues when analyzing possible refunding opportunities: A. Debt Service Savings The City has established a minimum savings threshold goal of 3% of the refunded bond debt service compared to the refunding bonds debt service unless there are other compelling reasons for defeasance. The present value savings will be net of all costs related to the refinancing. The decision to take savings on an upfront or deferred basis must be explicitly approved by the City Council. B. Restructuring The City will refund debt when in its best interest to do so. Refundings will include restructuring to meet unanticipated revenue expectations, achieve cost savings, mitigate irregular debt service payments, release reserve funds or remove unduly City of Pleasanton Debt Management Policy (February 2022) Page 10