January 11, 2022
Department
DATE: January 11, 2022
TO: Mayor Butt and Members of the City Council
FROM:
(List all relevant/responsive staff
persons)
Belinda Brown, Finance Director
Delmy Cuellar, Accounting Manager
Subject:
(This will appear on the agenda)
Annual review and adoption of debt policy for fiscal year 2021-2022
FINANCIAL IMPACT: The adoption of and adherence to financial policies can be measured by factors such as:
• Minimizing borrowing costs;
• Better management of the City's debt and
investment portfolios; and
• Providing fiscal security during times of
unforeseen economic downturns.
PREVIOUS COUNCIL
ACTION:
(List all dates items were heard or
council action took place)
N/A
STATEMENT OF THE
ISSUE:
Staff is requesting that City Council review and approve the City’s Debt Policy, which should be completed on an annual basis.
RECOMMENDED ACTION:
(This will appear on the agenda)
REVIEW the Debt Policy for Fiscal Year 2021 -2022; and
ADOPT the resolution approving said policy – Finance
Department (Belinda Brown 510-620-6740).
AGENDA
REPORT
January 11, 2022
DISCUSSION:
Municipal governments provide a wide range of services that have an impact on public safety and quality of lif e for community members. Prudent use of resources helps determine how effectively these services are provided on an ongoing basis. In addition to managing revenues and expenditures, it is also the municipal finance official' s responsibility to focus on management practices that will enable the City to better control its financial resources on a continuing basis.
Debt Policy
The foundation of any well -managed debt program is a comprehensive debt policy. A debt policy sets fort h the parameters for issuing debt and managing the debt portfolio, including post -issuance compliance. In the credit rating process, the rating agencies believe it is appropriate to place significant value on debt policies that have been adopted by cities.
The City's Debt Policy r equires that annual commitments relating to General Fund debt not exceed ten percent (10%) of annual General Fund revenues.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution Adopting the Fiscal Year 2021-22 Debt Policy Attachment 2 - Fiscal Year 2021-22 Debt Policy