Agenda Item # 7
Columbus Consolidated Government
Council Meeting

July 26, 2016

Agenda Report # 15


TO: Mayor and Councilors

SUBJECT: Debt Management Policy

INITIATED BY: Finance Department


Recommendation: Approval is requested by resolution to adopt a Debt Management Policy that provides written guidelines, allowances, and limitations which will be used to direct the debt issuance practices of governmental entities.

Background: The Government Finance Officers Association (GFOA) best practices recommends the adoption of a Debt Management Policy that provides written guidelines, allowances, and limitations which will be used to direct the debt issuance practices of governmental entities. The proposed Debt Management Policy intends to ensure that the Consolidated Government meets its debt obligations in a timely manner, to make sure that debt financing is only obtained when necessary, and to safeguard the future financial flexibility of the Consolidated Government by making sound decisions as it relates to the Consolidated Government’s debt limit, debt structure, debt issuance, debt management, and use of derivatives.

Analysis: Adoption of the attached Debt Management Policy provides reliability and transparency regarding the Consolidated Government’s approach to debt financing. Adherence to this policy is instrumental in demonstrating a well-managed government while also ensuring compliance with applicable provisions, laws, and regulations set forth in the State of Georgia.

Financial Considerations: There is no direct fiscal impact to the current operating budget in the current fiscal year. However, debt obligations related to future debt issuances may be positively affected with the adoption of this policy. Bond Rating Agencies may view such adoption as an indicator that the Consolidated Government can meet its debt obligations in a timely manner thereby reducing interest expenses related to future issuances.

Legal Considerations: Council approval is needed to formally adopt this fiscal policy.

Recommendations/Actions: Approve a resolution adopting the proposed Debt Management Policy.


Debt Management Policy Resolution with Attached Policy.pdfDebt Management Policy Resolution with Attached Policy.pdf
A RESOLUTION
NO. ________

WHEREAS, the Government Finance Officers Association (GFOA) best practices recommends the adoption of a Debt Management Policy that provides written guidelines, allowances, and limitations which will be used to direct the debt issuance practices of governmental entities; and,

WHEREAS, the Debt Management Policy intends to ensure that the Consolidated Government meets its debt obligations in a timely manner, that debt financing is only obtained when necessary, and that the financial future of the Consolidated Government is safeguarded; and,

WHEREAS, the Debt Management Policy seeks to remain fiscally conservative while still allowing the flexibility to restructure resources as financial and market conditions change and/or evolve; and,

WHEREAS, while adhering to this policy, the Consolidated Government will also abide by all provisions and laws set forth in the State of Georgia when issuing, managing, and retiring debt; and,

WHEREAS, in order to prudently administer this policy, the fiscal practices stated in the policy will be followed as it pertains to the Consolidated Government’s debt limit, debt structure, debt issuance, debt management, and use of derivatives; and,


NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:

That the attached Debt Management Policy is hereby adopted.
__________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________ 2016, and adopted at said meeting by the affirmative vote of _____________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.



_______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor