City Council Agenda
Memo to: Manteca City Council
From: Jeri Tejeda, Finance Director
Date: September 17, 2019
Subject: Adoption of a Debt Issuance and Management Policy and Continuing Disclosure Compliance Procedures.
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Adopt a resolution approving a Debt Issuance and Management Policy and Continuing Disclosure Compliance Procedures and Taking Related Actions.
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Background:
Debt Policy
A Debt Issuance and Management Policy (the "Debt Policy") is presented to the City Council for consideration. The Debt Policy supports the City's goals of fiscal sustainability and financial prudence and complies with requirements of Government Code Section 8855(i).
The City and the City's related public entities (such as the Successor Agency to the Manteca Redevelopment Agency and the Manteca Financing Authority), from time to time incur bonded debt (collectively, "bonds") to finance projects or for refunding purposes. The Successor Agency is currently contemplating the issuance of bonds to refund bonds issued by the former Redevelopment Agency.
Pursuant to Government Code Section 8855, a Report of Proposed Debt Issuance must be filed with the California Debt and Investment Advisory Commission before the sale of any bond issue. Amendments to Section 8855(i), which became effective in 2017, requires each Report of Proposed Debt Issuance to include the issuer's certification that: (i) the issuer has adopted a local debt policy, and (ii) the contemplated bond issue is consistent with such adopted policy. The local debt policy must include the following:
1. The purpose for which the debt proceeds may be used;
2. The types of debt that may be issued;
3. The relationship of the debt to, and integration with the issuer's capital improvement program or budget, if applicable;
4. Policy goals related to the issuer's planning goals and objectives; and
5. The internal control procedures that the issuer has implemented, or will implement, to ensure that the proceeds ...
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