REPORT TO COUNCIL
SUBJECT
Title
Adopt a New Council Policy on Debt Management, Amend Council Policy 7.1.1 and Find that the Action is Exempt from CEQA
Report
BACKGROUND
The City Council first adopted a policy governing debt management on March 15, 1988 as part of a broader Long Range Goals and Financial Policies policy. This policy has been reviewed and adopted five times since then with the most recent amendment dated 4/29/14. California passed Senate Bill (SB) 1029 in late 2016. SB 1029 expanded the requirements of Government Code Section 8855(i) which dictates requirements for reporting for debt issuance by government entities within the state. Specifically, Section 8855(i) requires any issuer of public debt to provide to the California Debt and Investment Advisory Commission, CDIAC, no later than 30 days prior to the sale of any debt issue a report of the proposed issuance. Effective January 1, 2017, issuers must certify on the Report of Proposed Debt Issuance that they have adopted local debt policies concerning the use of debt and that the proposed debt issuance is consistent with those policies.
EXISTING POLICY
Council Policy 7.1.1 Fiscal - Long Range Goals and Financial Policies, which address: Long Range Goals; Budget Policies; Revenue Policies; Capital Improvement Policies; Reserve Policies; and Debt Management Policies. Section 7.1F Debt Management Policies provides guidance for all aspects of City incurred debt. It addresses debt specific topics including: debt limits and capacity; issuance; and debt management.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" with the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378 (b) (4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
The City incurs debt for a variety of reasons, most commonly to f...
Click here for full text