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.
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
Attachments