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Chief Administrative Office recommending the Board adopt policy B-17 - Debt Management Policy to establish written guidelines governing the issuance of debt or other financial obligations pursuant to the requirements of SB 1029, codified as part of Government Code Section 8855.
FUNDING: N/A
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DEPARTMENT RECOMMENDATION
The Chief Administrative Office is recommending that the Board adopt a new Debt Management Policy (B-17) pursuant to the requirements of SB 1029, codified as part of Government Code Section 8855.
DISCUSSION / BACKGROUND
Effective January 1, 2017, SB 1029, codified as part of Government Code Section 8855, went into effect. The purpose of the bill was to require the California Debt and Investment Advisory Commission (CDIAC) to track and report on all state and local outstanding debt until fully repaid or redeemed. Included in Government Code section 8855 is a requirement for reporting of debt issuance for local governments that is consistent with the local debt policy. Currently the County of El Dorado does not have an adopted Debt Management Policy.
The Chief Administrative Office is recommending the Board adopt the attached policy B-17 - Debt Management Policy. The Debt Management Policy has been developed to meet the following objectives:
A. Identify the purposes for which debt proceeds may be used.
B. Identify the types of debt that may be issued.
C. Describe the relationship of the debt to the Capital Improvement Program and the County Budget.
D. Ensure the issuance of debt is consistent with the strategic plan goals and objectives as determined by the Board of Supervisors.
E. Implement and maintain a system of internal controls to ensure that the proceeds of the proposed debt issuance will be directed to the intended use.
Under the proposed policy, all debt issuance must be approved by the Board of Supervisors. Debt service obligations related to outstanding debt shall be appropriated on an annual basis in the County'...
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