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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />December 18, 2017 <br />SUBJECT <br />Consideration of Updated Debt Management Policy <br /> <br />RECOMMENDATION <br />By motion, approve the updated Debt Management Policy <br /> <br />BACKGROUND <br />The City of Redwood City is a municipal bond issuer, and as such, is subject to certain <br />legal and contractual requirements relating to the disclosure of information to investors <br />and the public at the time of initial issuance of bonds and on a continuing basis <br />thereafter. The City adopted its first debt policy in March of 2007 to establish formal <br />policy guidelines for incurring debt, including the City’s values concerning debt and debt <br />management. <br /> <br />It is necessary to update the existing Debt Management Policy due to the recent <br />passage of Senate Bill 1029, which amended Government Code Section 8855 to <br />impose additional reporting requirements on State and local agencies that issue debt. <br /> <br />ANALYSIS <br />The Debt Management Policy was updated in consultation with Bill Euphrat, the City’s <br />Municipal Financial Advisor, and Jones Hall, bond counsel. <br /> <br />The overall purpose of the City’s Debt Management Policy is not to unduly restrict future <br />financing options, but to memorialize the City’s practices and demonstrate to the <br />investment community that the City has given sufficient thought to the more salient <br />issues connected with debt financing. <br /> <br />Additionally, SB 1029 requires agencies to submit a new Annual Debt Transparency <br />Report and to certify compliance to adopted debt polices that include: <br />· Purposes for which debt proceeds may be used <br />· Types of debt that may be issued <br />· Relationship of the debt to, and integration with, the City’s Capital Improvement <br />Plan or budget, if applicable <br />· Policy goals related to the City’s planning goals and objectives <br />· Internal control procedures to ensure the proceeds of the proposed debt issuance <br />will be directed to the intended use <br /> <br />6.1.C. - Page 1