DISCUSSION
The Policy has been restructured into four sections. Section One sets the objectives of the Policy, which are to maintain accountability for the fiscal health of the City, enhance transparency of the City’s financing program, attain the best possible credit rating for each debt issue to reduce borrowing costs, select the most cost effective method of debt offering, and preserve financial flexibility and meet capital funding requirements.
Section Two covers seven aspects of the policy standards, including the purpose of debt issuance, types of allowable debt, methods of debt offering, issuance costs and fees, debt refunding, debt limits and debt structure.
Much of the amendments were included in Section Three, Compliance. Compliance requirements cover from the use and investment of debt proceeds, arbitrage rebate calculation, post-issuance compliance, and disclosure requirements. The City must comply with the “anti-fraud rules” of federal securities laws and regulations that are enforced by the Security Exchange Commission (SEC). The proposed amendment ensures that the City continues to comply with all applicable disclosure obligations and requirements and the federal securities laws and is also consistent with best practices as recommended by the Government Finance Officers Association (GFOA) and the California Society of Municipal Finance Officers (CSMFO).
The last Section of the Policy provides provisions for City staff to utilize professional services when issuing or refinancing debts.