BACKGROUND
In September 2016, the Governor signed Senate Bill (SB) 1029 (California Debt and Investment Advisory Commission: Accountability Reports) into law. Senate Bill 1029 requires issuers of public debt to adopt a Debt Management Policy to provide guidance in the issuance and management of their debt. Effective January 1, 2017, Government Code section 8855(i) requires any issuer of public debt to provide the California Debt and Investment Advisory Commission (CDIAC) no later than 30 days prior to the sale of any debt issue a report of the proposed issuance which includes notification to CDIAC that the issuing agency has adopted debt policies concerning the use of debt and that the proposed debt is consistent with those policies.
The intent of this bill was to facilitate improved financial transparency and accessibility to information about public debt. SB 1029 requires that debt management policies reflect local, state, and federal laws and regulations. It was recommended that public agency debt management policies incorporate recommendations set forth by the Government Finance Officers Association (GFOA). The attached Debt Management Policy is being brought forward to the Successor Agency to comply with state law as it relates to debt issuance requirements set forth by SB 1029.