Agenda Information Sheet
DEPARTMENT: Finance
DCM: Bryan Langley
Date: October 17, 2017
SUBJECT
Title
Receive a report, hold a discussion, and give staff direction regarding revisions to the City of Denton’s Debt Service Management Policy.
Body
BACKGROUND
The City’s Debt Service Management Policy was originally developed in 1995 and adopted by the City Council on March 5, 1996. On April 20, 2010, the City Council adopted revisions to the policy, including the requirement that the policy be reviewed at least annually to ensure compliance with statutory and Securities and Exchange Commission (SEC) requirements. The Debt Service Management Policy provides general guidelines by which the City will issue debt and addresses the issues of process, use and limitations.
After reviewing the existing Debt Service Management Policy with the City’s Financial Advisor, Bond Counsel and internal Debt Management Committee, the following revisions are being proposed:
1. Section I, A - Update to members of the Debt Management Committee including the addition of the Assistant Director of Finance, Controller and Treasury Administrator. Additionally provides that the City Attorney will serve as a legal advisor when needed and adds the City’s Internal Auditor as a non-voting member. (Page 1)
2. Section X, F - Clarification that year-end accounting entries related to negative cash balances in the grant funds and City warehouse are not considered interfund loans. (Page 11)
If the Audit/Finance Committee concurs with the proposed changes, a resolution to approve the revisions will be presented to Council for consideration on November 7, 2017.
RECOMMENDATION
Staff recommends that the revised Debt Service Management Policy be forwarded to the City Council for review and approval.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS
1. FY 2017-18 Red Lined Debt Policy
Respectfully submitted:
Chuck Springer, 349-8260
Director of Finance
Prepared by:
Antonio Puente, Jr.
Assistant Director of Finance