TO: Honorable Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Adoption of Debt Management Policy
RECOMMENDATION
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Approve the Resolution adopting the Debt Management Policy for the Napa-Vallejo Waste Management Authority.
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EXECUTIVE SUMMARY
The Napa-Vallejo Waste Management Authority (“Authority”) is a joint powers agency duly organized under the provisions of the Joint Exercise of Powers Act. A joint powers agency must provide prior notice to the Attorney General and the California Debt and Investment Advisory Commission in order to authorize bonds, loans, or other financing of a capital improvement project, pursuant to Government Code section 6586.5(a)(3). The California Debt and Investment Advisory Commission requires a local agency to certify it has adopted a local debt policy and that the contemplated debt issuance is consistent with that policy, pursuant to Government Code section 8855(i). The Authority does not currently have a debt management policy, and needs to adopt one for the Board to be able to authorize bonds, loans, or other financing mechanisms.
The proposed Debt Management Policy attached to this agenda item is based on the policy adopted by the County of Napa. Jones Hall, the Authority’s bond counsel, has made revisions to incorporate changes in state law that became effective in 2017, to prepare the Debt Management Policy proposed for adoption today. The general purpose of the policy is to ensure sound and uniform practices for issuing and managing debt. The policy identifies purposes for which long and short term debt may be issued, the types of debt the Board may consider, the goals of debt financing, and other criteria and considerations of issuing debt. The policy anticipates being reviewed periodically and updated as necessary.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Authority needs a Debt Management Policy to authorize bonds, loans, or other financing mechanisms. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None. |
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Consequences if not approved: |
The Authority will be unable to authorize bonds, loans, or other financing mechanisms. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This proposed activity is not subject to CEQA pursuant to CEQA Guidelines section 15060(c)(3) because the activity is not a project pursuant to section 15378, and because it will not result in a direct or reasonably foreseeable indirect physical change in the environment pursuant to section 15060(c)(2).
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