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Adopt a resolution to enact the recommended Debt Management Policy
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Published Notice Required? Yes __ No _X_
Public Hearing Required? Yes __ No _X_
DEPARTMENTAL RECOMMENDATION:
The Debt Advisory Committee recommends that the Board of Supervisors adopt a resolution to enact the recommended Debt Management Policy.
SUMMARY/DISCUSSION:
The County does not currently have a debt policy. A debt policy can be a useful tool in guiding decisions related to debt and adoption of one is now a requirement under State law to issue new debt. The County recently initiated the process to refund its Series 2007 Certificates of Participation and must adopt a debt policy as part of the process.
California Senate Bill No. 1029 took effect on January 1, 2017. It requires that 30 days prior to the issuance of any debt, issuers must adopt a local debt policy that addresses the following:
1. The purposes for which the debt proceeds may be used.
2. The types of debt that may be issued.
3. The relationship of the debt to, and integration with, the issuer's capital improvement program or budget.
4. Policy goals related to the issuer's planning goals and objectives.
5. The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use.
The debt policy does not have an immediate financial impact. The primary purpose is to guide decisions by the County related to funding new projects and managing its existing and future debt portfolio while also complying with State law. Adherence to a prudent debt policy can contribute to strong long-term financial performance. Additionally, the existence of the formally adopted debt policy is viewed as a positive credit rating factor by the agencies that rate the County's debt.
The County retains discretion related to most aspects of the debt policy. Important considerations within the policy include:
1. Level o...
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