File #: AF17-017    Version: 1 Name:
Type: Audit/Finance Committee
File created: 10/5/2017 In control: Audit/Finance Committee
On agenda: 10/17/2017 Final action:
Title: Receive a report, hold a discussion, and give staff direction regarding revisions to the City of Denton's Debt Service Management Policy.
Attachments: 1. Exhibit 1 - FY 2017-18 Red Lined Debt Policy
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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 fi...

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