FILE:  DE

Cf:  DEA

INDEBTEDNESS

The Plaquemines Parish School Board recognizes the costs and benefits of debt financing.  The Board shall conform to the following policies, goals and objectives in connection with debt financing:

• Long-term debt shall only be used for financing capital projects or assets with long-term useful lives.
  
  

• Long-term debt shall not be used to finance short-term operations.
  
  

• The maturity of any long-term debt shall not exceed the anticipated useful life of the asset(s) constructed or purchased.
  
  

• Derivatives or other complicated financing arrangements shall be avoided.
  
  

• All debt obligations shall be met when due.
  
  

• The Board shall attempt to obtain the most favorable terms for any debt incurred.
  
  

• The Board shall strive to obtain the most favorable credit ratings, in order to help lower the costs of any potential debt.
  
  

• Before incurring any debt, the Board shall consider the costs of incurring the debt, as well as any financing alternatives which may be available, consistent with its other financial requirements, and the Board shall satisfy itself that the decision to incur debt is financially prudent and responsible.

Adopted:  June 6, 2011

Ref:     La. Rev. Stat. Ann. §§17:89, 17:1371, 39:471, 39:554, 39:562, 39:1410.60, 39:1410.61, 39:1410.62, 39:1410.63, 39:1410.64, 39:1410.65

Board minutes, 6-6-11

Plaquemines Parish School Board