Title
Subject: Debt Management and Debt Affordability
From: Financial Services Agency
Recommendation: Adopt the following legislation regarding Fiscal Year 2003-2004 Debt Management and Debt Affordability policies:
1) Adopt a Resolution adopting the City of Oakland Fiscal Year 2003-2004 Financial Policies with respect to Debt Management and Debt Affordability;
Body
CITY OF OAKLAND -1, C@
OFFICE Q F' T' R
. HE CITY CLE
A GEADA REPORT
2W 1 2 PH 2' 3 1
TO: Office of the City Manager
ATTN: Robert C. Bobb
FROM: Financial Services Agency
DATE: June 24. 2003
RE: A REPORT AND ACCOMPANYING RESOLUTION ON THE CITY'S
FINANCIAL POLICIES ON DEBT MANAGEMENT AND DEBT
AFFORDABILITY
SUMMARY
This report is a follow-up to the February 18, 2003) Agenda Report entitled "Inforniation Report
on the City's Financial Policies". That report discussed the general recommendations of the
Team 4A of Moving Oakland Forward regarding the adoption of a Mt set of financiat policies
and a regular process for monitoring, reporting on compliance, and updating those policies. This
report specifically addresses the following recommendations:
• Debt Management Policy: Adopt a debt management policy (attached), which would
provide guidance to the City Council and to City staff by identifying the parameters for
issuing debt and for managing the City's debt portfolio.
• Debt Affordability Study (or Debt Capacity Study): Annually adopt a debt capacity study
(attached), identifying limits for total annual debt service payments with relation to the
City's budget, so as to ensure that any new debt issued is affordable and cost-effective.
This report also contains a resolution for Council approval to reflect these policies. It is
recommended that these policies be adopted durin.g the FY 200' )-2005 budget process.
FISCAL IMPACTS
This report discusses the implementation of a Debt Management Policy and Debt Affordability
Study. There are no immediate ...
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