Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

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



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