DATE: November 14, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
SUBJECT:
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Consideration of Resolution 2017-81, A Resolution for Adoption of a Debt Management Policy (11/30/17 Budget & Finance 4-0)
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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. The policy was most recently amended on April 12, 2016.
Financial Impact
There is no direct financial impact. Stating implicitly the use of State of Tennessee Revolving Fund Loans as an allowable form of debt for the Water & Wastewater Utility is a clarification of the previous policy.
Recommendation
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Staff recommends adoption of the policy with certain revisions.