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File #: 19-8813    Version: 1 Name: debt policy 1-23-18
Type: Resolution Status: Adopted
File created: 3/21/2019 In control: Finance
On agenda: 4/2/2019 Final action: 4/2/2019
Title: Resolution approving the City of Grand Prairie Debt Management Policy to become effective upon passage and approval
Attachments: 1. debt policy 3-21-2019 FINAL CLEAN, 2. debt policy 3-21-2019 DRAFT-MARKED UP

From

Diana G. Ortiz, Chief Financial Officer

 

Title

Resolution approving the City of Grand Prairie Debt Management Policy to become effective upon passage and approval

 

Presenter

Diana G. Ortiz

 

Recommended Action

Approve

 

Analysis

The City's Debt Management Policy was last updated January 2018.  In addition to a normal annual review, significant changes have occurred in the municipal debt market.  First, the IRS has severely limited our opportunity to issue advance refundings.  Language on those changes can be found in Section V. Refunding.  Further, federal SEC requirements are forcing more continuing disclosure requirements that the City must follow after issuing bonds.  These requirements follow the term of new bonds we issue and last throughout the life of each obligation.  Relevant policies on this issue are found in section XII. Secondary Market Disclosure

 

All other changes are mostly considered clarification or administrative edits.

 

For City Council convenience, a marked up version is provided that highlights the changes.  However, the adoption will be on the final/clean document as also attached.

 

Financial Consideration

There is no financial impact resulting from this action.

 

Body

A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, APPROVING THE PROPOSED CITY OF GRAND PRAIRIE DEBT MANAGEMENT POLICY TO BECOME EFFECTIVE UPON PASSAGE AND APPROVAL

 

Whereas,                       it is the goal of the City to maintain a long-term, stable and positive financial condition; and,

 

Whereas,                      well-planned and prudent public funds' debt management is essential to the achievement of the City's goals;

 

Whereas,                      the City is required to review, revise if necessary and adopt the City's Debt Management Policy annually, and

 

WHEREAS,  the City promptly responds and addresses changes in federal and industry rules that affect our debt management.

 

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:

 

Section 1.   The attached proposed debt management policy is approved and updated.

 

SECTION 2. This resolution shall be in force immediately upon its passage in accordance with the Charter of the City of Grand Prairie and it is accordingly so resolved.

 

PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, April 2, 2019.