Title
Staff Report for Discussion on City Debt Management Policy
Staffreport
CITY COUNCIL PRIORITY
• Fiscal Sustainability and Transparency
SUMMARY
Discussion on the City of San Leandro Debt Management Policy is for information only.
RECOMMENDATION
Staff recommends the City Council Finance Committee review the City of San Leandro Debt Management Policy.
BACKGROUND
California Government Code Chapter 11.5, Section 8855 (i)(1) requires cities to report proposed debt issuances to the California Debt and Investment Advisory Commission prior to any sale. The existing San Leandro debt policy was approved by the City Council and became effective in March 2018.
DISCUSSION
The issuer of any proposed debt shall submit a report on the proposed issuance to the Commission prior to the sale. In addition, the proposed debt issuer must certify to the Commission that it has adopted a local debt policy concerning use of debt in accordance with the Government Code. A local agency debt policy shall include all the following:
• Purposes for which debt proceeds may be used.
• Types of debt that may be issued.
• Relationship of debt to capital improvement program or budget.
• Policy goals related to planning goals and objectives.
• Internal controls ensuring debt proceeds are used as intended.
The approved City Debt Management Policy is consistent with the Government Code. Staff has reviewed the existing Policy and recommends no changes. The outstanding principal amount for all City debt as of June 30, 2024, is $99,272,000. The City has no approved plan for issuing additional debt.
ATTACHMENT
• Attachment A: City of San Leandro Debt Management Policy
• Attachment B: Debt Management Policy Presentation
PREPARED BY
Felicia Silva, Assistant Finance Director