DATE: September 14, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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Consideration of Resolution 2015-76, A Resolution for Adoption of a Debt Management Policy (11/12/15 Finance 4-0; 03/10/16 Finance 3-0; 03-22-16 WS)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a review and possible revision to the City Debt Management Policy.
Background
The Board of Mayor and Aldermen in 2009, adopted a debt management policy to guide the City of Franklin in its undertaking of financial obligations, maintain a sustainable financial position, and assist in analyzing the use of debt for capital projects. The debt management policy will need to be modified and updated from time to time to conform to state requirements, market conditions, and rating implications, and best serve the needs of the City. This is particularly important since Moody’s and Standard & Poors have changed their methodologies for review of municipal bond ratings.
Financial Impact
There is no direct financial impact. Establishing general debt management policies will affect the timing and quantity of borrowing to finance capital improvement projects in the future.
Recommendation
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Staff recommends adoption of the policy with certain revisions.