To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: ADOPT Resolution Reaffirming and Authorizing Updates to the County Debt Management Policy
RECOMMENDATIONS:
ADOPT Resolution updating and reaffirming the County Debt Management Policy.
FISCAL IMPACT:
No specific fiscal impact.
BACKGROUND:
On December 7, 2006, the Finance Committee reviewed and discussed a report regarding establishing a County Debt Management Policy. The Committee directed staff to report to the full Board on December 19, 2006 the recommendation to adopt a formal County Debt Management Policy. A formal policy was adopted on December 19, 2006 (Resolution No. 2006/773).
Since that time, the Board of Supervisors has worked exceptionally hard to address the County's financial issues and has set very ambitious and necessary goals for lowering cost growth, balancing the budget, and increasing reserves. These solutions have been aimed at addressing both short- and long-term needs and improving the County's future ability to maintain public services. The four financial policy areas that have contributed significantly to the Board's goals are the following:
* Budget Policy (established November 2006)
* General Fund Reserve Policy (established December 2005)
* Facilities Maintenance (included in Budget Policy)
* Debt Management Policy (established December 2006)
The Debt Management Policy establishes debt affordability standards that help the County to evaluate when, why, and how much debt should be issued. In addition, the Debt Management Policy:
* Establishes parameters for issuing and managing debt;
* Provides guidance to decision makers so as not to exceed the debt affordability standards;
* Directs staff on objectives to be achieved both pre- and post-issuance;
* Promotes objectivity in decision-making and limits the role of political influence;
* Describes responsibilities for Continuing Disclosure and Post-Issuance Tax compliance policies and procedures; and...
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