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3113107 <br />City of Redwood City, CA <br />Debt Management Policy <br />I. Purpose <br />The purpose of this policy is to establish parameters and provide guidance <br />governing the issuance, management, continuing evaluation of, and reporting on <br />all debt obligations issued by the City of Redwood City, the Redwood City Public <br />Financing Authority, and the City of Redwood City Redevelopment Agency, and to <br />provide for the preparation and implementation necessary to assure compliance <br />and canformity with this policy. This policy specifically excludes the Port of <br />Redwood City. <br />Il. Policy Statement <br />Under the governance and guidance of federal and state laws and the City's <br />charter, ordinances, and resolutions, the City may periodically enter into debt <br />obligations that finance the construction or acquisition of infrastructure and other <br />assets or to refinance existing debt for the purpose of meeting its governmental <br />obligation to its residents. It is the City's desire and direction to assure that such <br />debt obligations are issued and administered in such a fashion as to obtain the <br />best long-term financial advantage to the City and its residents, while making every <br />effort to maintain and improve the City's bond ratings and reputation in the capital <br />markets. <br />The City may also issue conduit debt obligations on behalf of private enterprise, or <br />non-city agencies or authorities for the purpose of constructing facilities or assets <br />which further the goals and objectives of City government. In such case, the City <br />shall take reasonable steps to confirm the financial feasibility of the project and the <br />financial solvency of the borrower and take reasonable precautions to ensure the <br />public purpose and financial viability of such transactions. <br />The City will not use short-term borrowing to finance operating needs except in the <br />case of an extreme financial emergency which is beyond its control or reasonable <br />ability to forecast. Recognizing that bond issuance costs add to the total interest <br />costs of financing, bond financing should not be used if the aggregate cost of <br />projects to be financed by the bond issue does not exceed $1,000,000. <br />Ill. General Debt Governing Policies <br />The City hereby establishes the following policies concerning the issuance and <br />administration of debt: <br />A. The City will utilize debt obligations only for acquisition, construction, or <br />remodeling of capital improvement projects only after giving due consideration <br />to all available funding sources, including available cash reserves, available <br />current revenue sources, potential future revenue sources, potential grants and <br />all other financial resources legally available for such projects. <br />6.1 B <br />Page 3 <br />