REPORT TO COUNCIL
SUBJECT
Title
Action on the City's Debt Management Policy
Report
BACKGROUND
The Government Finance Officers Association (GFOA) recommends that state and local governments adopt comprehensive written debt management policies. In addition, effective January 1, 2017, California Government Code section 8855(i) requires any issuer of public debt to provide the California Debt and Investment Advisory Commission (CDIAC) a report of any proposed issuance. The report to the CDIAC must include certification that the issuer has adopted local debt policies concerning the use of debt and that the proposed debt issuance is consistent with those policies.
A debt management policy improves the quality of decisions and adherence to the policy signals to rating agencies and capital markets that a government is well managed and therefore is likely to meet its debt obligations in a timely manner. The City of Santa Clara's (the "City") Debt Management Policy (the "Policy") provides guidance for the issuance of bonds and other forms of indebtedness to finance land acquisition, construction, equipment, and other capital requirements of the City. The Policy is reviewed annually by Finance Department staff and updated as necessary to promote prudent debt management decisions and to remain compliant with state and federal laws.
The City's original Policy was adopted by City Council in March 2018 and provides written guidelines on the issuance of debt, management of the City's debt portfolio, and adherence to various laws and regulations related to the City's debt.
DISCUSSION
The City's Policy is continually monitored to determine if updates are necessary and prudent. A review of the current Policy was conducted by the Finance Department in anticipation of the upcoming General Obligation bond issuance anticipated for January 2026. In the latest review of the Policy, staff has identified recommended revisions (See Attachment 1 for the revised policy and Attachmen...
Click here for full text