Cityof of Stockton Debt Policies For The City
Cityof of. Stockton Debt Policies For The City of Stockton 1
Cityof of. Stockton Debt Management • Thoughtful and strategic use of debt to achieve capital project and infrastructure financing. This includes the development of a formal debt policy Ø A formal debt policy is an industry norm; “Government Finance Officers Association - Best Practices” standard Ø Bond Rating Agency expectation for certain types of financing Ø A “first” for Stockton City Council – previously no comprehensive debt policy in place 2
Cityof of. Stockton Debt Policy Ø Establishes parameters for issuing and managing debt Ø Outlines City’s approach to financing long-term debt and refinancing outstanding debt Ø Addresses debt capacity and sets financing criteria Ø Establishes terms and conditions of bond issuance 3
Cityof of. Stockton Debt Policy Ø Addresses the consideration and application of credit enhancements such as bond insurance and letters of credit Ø Outlines the options for bond method of issuance Ø Establishes Underwriter, Bond Counsel and Disclosure Counsel selection criteria Ø Defines the role of consultants in the debt issuance/debt administration process 4
Cityof of. Stockton Policy Highlights • General Purpose Debt Capacity ØDebt service will not exceed 7% of General Fund expenditures and transfers out ($13 mm) • Swap Policy ØImproved management of assets & liabilities • Methods of Issuance ØDebt Policy Committee will determine case by case the best methodology to issue debt 5
- Slides: 5