FINANCIAL ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
title
Review updates to the City of Naperville Debt Management Policy
body
DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council first adopted a Debt Management Policy in 2008. Minor revisions to the policy were reviewed and approved by the Financial Advisory Board (FAB) and City Council in 2010 and 2013.
It is best practice to conduct periodic review of financial policies, and current staff in the Finance Department are not aware of any reviews of the Debt Management Policy since it was last revised in 2013.
DISCUSSION:
Finance Department staff performed a thorough review of the Debt Management Policy, enlisting the assistance of FAB member Tom Gavin (a retired municipal advisor) and Anthony Miceli, President at Speer Financial, the City’s current municipal advisor.
From that review, the following revisions are recommended:
1. Minor edits throughout to improve clarity, grammar, spelling and formatting.
2. Removal of references to debt instruments that are no longer authorized by law, such as Build America, Recovery Zone Economic Development and Recovery Zone Facility Bonds.
3. Restrictions on the use of derivative products.
4. Removal of redundant language or recitation of terms.
5. Removal of references to the Annual Fiscal Indicators Report (AFIR). Staff is unaware if this report has ever been generated as a stand-alone report, as it calls for information contained within other published reports, including the Annual Comprehensive Financial Report and the Annual Budget and Capital Improvement Plan.