City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: December 5, 2022
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-86 Adopting a Debt Management Policy
RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2022-86, A Resolution of the City Council of the City of Gonzales Adopting a Debt Management Policy.
BACKGROUND
Senate Bill 1029 (amending California Government Code section 8855) passed in 2017, requires public agencies to establish a debt management policy before incurring debt. As part of the State Revolving Loan from the State Water Resources Control Board for the Industrial Wastewater System Project, the city needs to adopt a Debt Management Policy.
REVIEW & ANALYSIS
Finance Director Mike Howard prepared the Debt Management Policy and City Attorney Mike Rodriquez reviewed it and provided comments that have been incorporated into the attached Debt Management Policy.
The key objectives of the Debt Management Policy are to:
• Maintain the City’s sound financial position.
• Minimize debt service and issuance costs.
• Maintain access to cost-effective borrowing.
• Achieve and maintain highest reasonable credit rating. • Ensure full and timely repayment of debt.
• Maintain full and complete financial disclosure and reporting.
AGENDA
ITEM
9 • Ensure compliance with State and Federal laws and
Staff recommends that the Council adopt the attached Debt Management Policy.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: Constructing an Industrial Wastewater System supports our vision to expand the city’s wastewater system capacity and support economic development that will provide more local employment opportunities for City residents
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: See Vision explanation above
City services will be delivered in a cost-effective, respectful and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes ____ No ___ N/A
• Housing X Yes ____ No ___ N/A
• Recreation X Yes ____ No ___ N/A
• Environment X Yes ____ No ___ N/A
• Education X Yes ____ No ___ N/A
Explain: See Vision above.
ALTERNATIVES
There are no alternatives to adopting a Debt Management Policy as it’s required by Senate Bill 1029.
BUDGET IMPACT
There is no budget impact related to adopting a Debt Management Policy
CONCLUSIONS
It is recommended that the City Council Adopt Resolution No. 2022-86, A Resolution of the City Council of the City of Gonzales Adopting a Debt Management Policy.
Attachments:
1. Resolution No. 2022-86
2. Debt Management Policy