HomeMy WebLinkAboutG- 6 Debt Policy and Procedures fo rthe City of Azusa 12 / 0101
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AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
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FROM: ROBERT K. PERSON, ASSISTANT CITY MANAGER � "n"
MARCIE MEDINA, DIRECTOR OF FINANCE �/V"
VIA: RICK COLE, CITY MANAGER --
DATE: DECEMBER 17, 2001
SUBJECT: DEBT POLICY AND PROCEDURES FOR THE CITY OF AZUSA
RECOMMENDATION
It is recommended City Council approve the "Land Based Financing" portion of the City of
Azusa's Debt Policy
BACKGROUND
On November 19, 2001, staff presented City Council with a draft Debt Policy and Procedures
for the City of Azusa which outlined the core of a well-managed debt program for the City. A
debt policy establishes the parameters for issuing and managing debt. The functions of a
debt policy are to : provide guidance to community leaders so as not to exceed acceptable
levels of indebtedness and risk; direct staff on objectives to be achieved, both before funds
are sold and for the ongoing management of the debt program; facilitate the debt issuance
process by making important decisions ahead of time; and promote objectivity in decision
making.
At that meeting, the Council directed staff to work with the Mayor and City Treasurer to
further review the document and make appropriate changes if needed. It is that working
group's recommendation that Council approve only the "Land Based Financing" portion of the
debt policy as there is a potential financing being proposed by the developer of the Mountain
Cove project which would require City Council approval. It is important that this portion of
the debt policy be in place before discussions about the proposed Community Facilities
District Financing begin with Standard Pacific Homes. The working group will return with the
balance of the debt policy and accompanying recommendations shortly after the first of the
year.
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