DATE: August 12, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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Consideration of Resolution 2015-76, a Resolution to Adopt a Debt Management Policy
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the City’s policies for issuance and debt management.
Background
The City adopted a debt management policy in 2009 which describes the scope of the City’s issuance of debt, establishes a flexible bank of capacity based on parameters used by the rating agencies, and conforms to State law. When this policy was adopted, it was anticipated that the details of the policy would be reviewed periodically for changes in state and federal law, as well as changes in the overall market environment.
Much has changed in the financial world since the existing policy was drafted and adopted by the Board. Changes proposed for the 2015 version of the City Debt Policy document incorporate recommendations from our financial advisors. Also incorporated are the major changes in bond rating policies put into effect by Moody’s and Standard & Poor’s as a result of the financial turbulence of 2007-2009.
Financial Impact
No direct financial impact occurs as a result of the adoption of these policies.
Recommendation
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Staff recommends Finance Committee approval of the policy document and forwarding to BOMA for adoption.