FINANCIAL POLICIES
The Treasurer will provide a monthly reconciliation of all funds included in the investment portfolios. The reconciliation shall utilize all available information including the City's books, the Demand Deposit Bank account, the custodian's statement, and the fiscal agent and trustee's statement. Review of Investment Portfolio The securities held by the City must be in compliance with Section 17, Authorized and Suitable Investments, at the time of purchase. The Treasurer shall review the portfolios quarterly to identify any securities that are no longer in compliance. The Treasurer shall report any major and critical incidences of noncompliance in the quarterly treasurer’s report to the City Council and Investment Advisory Committee.
Investment Policy Adoption The City Council shall review and adopt this Investment Policy by resolution annually.
M. Debt Management Policy Senate Bill (SB) 1029 (Hertzberg), signed by Governor Brown on September 12, 2016, requires issuers to adopt debt policies addressing the purposes for which debt proceeds may be used, the types of debt may be issued, the relationship of the debt to and, integration with, the capital improvement program or budget, policy goals, and internal control procedures to ensure debt proceeds will be directed to the intended use.
The City of Irvi ne’s Debt Policy set forth in this document is in compliance with SB 1029.
Introduction The City of Irvi ne’s Debt Management Policy sets a framework for the issuance and use of debt in order to minimize the City’s debt burden and cost of issuance; obtain and maintain the highest possible credit ratings; ensure full compliance with applicable federal, state, and local laws and regulations; and provide optimal financial flexibility for the City. This policy applies to all debt issued by the City and its component units. Debt Limits The City shall maintain outstanding debt within the limits prescribed by State of California statutes and at levels consistent with credit objectives. There is no statutory restriction on the amount of revenue bonds that can be outstanding at any given time. However, each proposed financing will be carefully assessed by city staff, subject to approval by the City Council. Debt Structure The City will normally issue debt with the term of up to 30 years. Escalating debt service payments in later years will be avoided if practical, with the potential exception of the first and final year of a debt payment schedule. Variable rate debt may be considered when determined to be in the best interest of the City. Interest and principal payments shall not be deferred, with interest paid in the first fiscal year after debt issuance and principal starting no later than the second fiscal year.
Credit Objectives The City of Irvine shall maintain the highest possible credit ratings for all categories of long-term debt.
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FY 2023-25 Adopted Budget
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