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Finance DepartmentChristopher M. Quinn, MACC, CPA, CFE, CGFO, CGMDawna Parent Phillips, MBA
Introduction
A Debt Policy Establishes the Parameters for Issuing and Managing Debt•Provides Guidance from City Council•Facilitates the Debt Issuance Process•Promotes Objectivity in Decision-making•Provides Evidence to Rating Agencies of City’s Commitment to Sound Financial Management
Characteristics of a Debt Policy
Promotes Attainment of Strategic Action Plan Objectives
•Comprehensive Approach to Affordability•Reflects City Council Guidance and Philosophy•Establishes Limits while Preserving Flexibility
GFOA Debt Policy Recommendations
• Legal Debt Limitations or Limitations Established by Policy
• Types of Debt Permitted and Issuance Criteria• Credit Objectives• Authorized Methods of Sale• External Finance Professional Selection Process• Integration of Capital Planning & Debt Financing
Activities
Best Practices
• City Currently Follows GFOA and Industry Guidelines– Example: Recent Bond Rating Increase
• Written Policy Proposal is Consistent with Current Practices & Guidelines– One of the Most Important Financial Policies– Adoption Provides the City with a Procedural
Framework– Demonstrates City’s Commitment to Complete &
Full Public Disclosure
Next Steps
• Council Consideration for Approval on 11/5/2013
• Submit to Association of Public Treasurers (APT) for Certification
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