File #: 15-0741    Version: 1 Name:
Type: Resolution Status: Agenda Ready
File created: 8/12/2015 In control: Budget & Finance Committee
On agenda: 9/10/2015 Final action:
Title: Consideration of Resolution 2015-76, a Resolution to Adopt a Debt Management Policy
Sponsors: Eric Stuckey, Russ Truell
Attachments: 1. Debt Policy updated 11.26.13, 2. Updated 2013 US Local Government Medians Demonstrate Stability of Sector..., 3. Franklin Finance Commitete Meeting Moodys and SP scorecard 9 10 15.pdf

 

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.