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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 6, 2018 <br />TITLE: <br />ADOPT A RESOLUTION ESTABLISHING THE <br />DEBT MANAGEMENT POLICY <br />(STRATEGIC PLAN NO. 4, 1) <br />CITY ANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1$ Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a Resolution approving the City's Debt Management Policy <br />On January 8, 2018, the Economic Development, Infrastructure, Budget and Technology <br />("EDIBT") Committee was presented a draft of the Debt Management Policy. <br />DISCUSSION <br />Senate Bill 1029 ("SB1029") (Hertzberg) "California Debt and Investment Advisory Commission <br />(CDIAC) Accountability Report" became effective on January 1, 2017. The overall goal of the <br />legislation is to increase transparency on state and local government borrowing and on the use and <br />spending of bond proceeds offered through the public market. The new law requires local <br />governments to adopt debt policies concerning the use of bond proceeds prior to any debt issuance <br />after January 21, 2017, while providing local control over the timeline and mechanism for adopting <br />these local debt policies. Moreover, the new law will also require local governments to submit <br />annual reports on debt issued after January 21, 2017 to CDIAC through a state wide repository in <br />order to track borrowing and spending of bond proceeds offered through the public market by entity. <br />In addition to applying the requirements of SB 1029 to debt offered through the public market, staff <br />is also proposing to expand the requirements of SB 1029 to all privately placed debt as well. <br />With no foreseeable debt being issued in 2017, staff employed a two-pronged comprehensive <br />approach in developing the City's Debt Management Policy ("Policy"): 1) staff researched guidelines <br />& industry standards and 2: researched best practices by surveying various California <br />municipalities. A draft was then developed and presented to the Economic Development, <br />Infrastructure, Budget and Technology ("EDIBT") Committee on January 8, 2018. Committee <br />members wanted to ensure feedback from the Executive Management Team was considered and <br />5513-1 <br />