HomeMy WebLinkAboutR-2023-148 Resolution to establish a Debt Financial Policy for the City of Yakima RESOLUTION NO. R-2023-148
A RESOLUTION establishing a debt policy for the City of Yakima.
WHEREAS, the City of Yakima (hereinafter referred to as City) may periodically have a
need to issue long-term debt; and
WHEREAS, the City deems to ensure that all debt is issued prudently and cost-
effectively; and
WHEREAS, the City desires to maintain a sound debt position and protect the credit
quality of its obligations; and
WHEREAS, the City desires to set forth guidelines for the issuance and management of
all financing of the City; and
WHEREAS, the City used the guidelines provided by the Washington Public Treasures
Association to establish a debt policy; and
WHEREAS, the City Council is authorized to create its own policies as to how to
manage debt; and
WHEREAS, the City Council finds that it is in the best interest of the City and its
residents to adopt a Debt Policy; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City of Yakima's Debt Policy, attached hereto and incorporated herein by this
reference, shall be effective as of the date of this resolution.
ADOPTED BY THE CITY COUNCIL this 7th day of November, 2023.
anice Deccio, ayor
ATTEST:
SV,At- i
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Rosalinda Ibarra, City Clerk �1 SHi'
CITY OF YAKIMA
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40
DEBT POLICY
WPTA
CERTlticAm of EXCELLENCE
CITY OF YAKIMA
ADOPTED BY CITY COUNCIL
11 -7-2023
City of Yakima Debt Policy Adopted 11/7/2023
TABLE OF CONTENTS
SECTION I. INTRODUCTION 1
SECTION II. GOVERNING PRINCIPLES 1
SECTION III. ROLES AND RESPONSIBILITIES 3
SECTION IV. PROFESSIONAL SERVICES 4
SECTION V. TRANSACTION-SPECIFIC POLICIES 6
SECTION VI. COMPLIANCE POLICIES 8
SECTION VII.OTHER POLICIES 9
i
City of Yakima Debt Policy Adopted 11/7/2023
City ofTOAA:024
ADMINISTRATIVE POLICIES Policy Number: XX- xxx
o` } t,'.:. Department: Finance Authorized by: City Council
•
1 =I'
. = Effective Date: 01/01/2023 Supersedes: New Policy
Section I. Introduction
Purpose and Overview
The purposes of this Debt Policy ("Policy") of the City of Yakima ("City") are:
• To set forth comprehensive guidelines for the issuance and management of all City
financings;
• To establish debt objectives and parameters necessary to safeguard the City's fiscal
health and sustainability;
• To articulate the City Council's intent for the structure of debt issuance, governance over
City debt and long-term planning;
• To communicate clear policy and strategy guidelines for City debt administration;
• To assure all debt complies with statutes and regulatory requirements; and
• To demonstrate to citizens, taxpayers and voters a transparent and accountable
stewardship plan.
Adherence to this Policy is essential to ensure that the City issues debt prudently and cost
effectively, maintains a sound debt position, and protects the credit quality of its obligations.
Section II. Governing Principles
In the issuance and management of debt, the City shall comply with the Constitution of
Washington State (the "State") and with all other legal requirements imposed by federal, state,
and local laws, rules and regulations, as applicable. The following section highlights the legal
framework of the debt issuance.
Governing Law
State Law- The City may contract indebtedness as provided for by chapter 35.22 RCW and the
City Charter, Article XII, Section 1. General obligation indebtedness secured by and payable from
City tax revenues is subject to the debt limitations in RCW 39.36.020 and Article VIII of the State
Constitution. Indebtedness secured by and payable from enterprise revenues (e.g., revenue
bonds) or from special assessments are not subject to constitutional or statutory limitations. The
City shall issue and sell bonds evidencing indebtedness in accordance with chapter 39.46 RCW,
and shall issue and sell refunding bonds in accordance with chapter 39.53 RCW.
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City of Yakima Debt Policy Adopted 11/7/2023
Federal Laws, Rules and Regulations - The City shall issue and manage debt in accordance
with applicable federal laws, rules, and regulations, including the Internal Revenue Code of 1986,
as amended (the "Code"), the Securities Act of 1933, and the Securities Exchange Act of 1934,
together with proposed, temporary and final regulations promulgated, and official public guidance
published, under these laws, as applicable. The City has instituted and shall comply with its
separate policies and procedures relating to its obligations under the Code and securities laws in
connection with its obligations.
Local Laws and Regulations - The City shall issue and manage debt in accordance with the
limitations and constraints imposed by local rules and regulations, including the City Charter and
City Municipal Code.
Permitted Debt by Type
Subject to changes in State law, the City may legally issue debt using only the debt instruments
described below:
Unlimited Tax General Obligation Bonds — The City is authorized to issue Unlimited Tax
General Obligation Bonds under State law, subject to City Council approval and approval of the
voters within the jurisdiction of the City as required by law. Unlimited Tax General Obligation
Bonds may be issued for any capital purpose approved by the voters, other than the replacement
of equipment.
Limited Tax General Obligation Bonds —The City is authorized to issue Limited Tax General
Obligation Bonds under State law, subject to City Council approval. Limited Tax General
Obligation Bonds may be issued under State law for any lawful City purpose.
Revenue Bonds—The City is authorized to issue revenue bonds under State law, subject to City
Council approval. Revenue bonds may be issued to finance construction or improvements to
facilities of enterprise systems operated by the City in accordance with the Capital Improvement
Program and are generally payable from the enterprise. No taxing power or general fund pledge
is provided as security. Unlike general obligation bonds, revenue bonds are not subject to the
City's statutory debt limitation nor is voter approval required.
Short Term Debt — The City is authorized to issue short term debt under State law, including
bond anticipation notes or other evidences of indebtedness, subject to City Council approval.
Special Assessment Bonds/LID Bonds — The City is authorized to issue special assessment
bonds, including but not limited to local improvement district bonds under chapter 35.22 RCW,
subject to City Council approval after appropriate formation of a special assessment district.
Special assessment bonds represent debt that is repaid by the property owners who benefited
from the capital improvement through annual assessments paid to the City.
Local Option Capital Asset Lending ("LOCAL") Program Debt — The City is authorized to
enter into financing contracts with the Office of the State Treasurer under chapter 39.94 RCW
and the LOCAL program, subject to City Council approval.
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City of Yakima Debt Policy Adopted 11/7/2023
Public Works Trust Fund ("PWTF") Loans — The City is authorized to enter into loan
agreements with the Public Works Board under chapter 43.155 RCW, subject to City Council
approval.
Other Debt Instruments -The City is authorized to enter into capital leases, conditional sales
contracts, and other forms of debt instruments subject to State law and the approval of the City
Council.
The City is authorized to enter into intergovernmental loans such as a Supporting Investment in
Economic Development (SIED) loan subject to City Council approval.
Purpose for Borrowing
The City shall issue long-term debt solely for the purpose of financing or refinancing the cost of
design, acquisition and/or construction of long-lived capital projects or to refund outstanding debt.
Debt can be used to equalize the cost of a capital need over the useful life of the capital item.
Long-term debt will not be used to support current operations.
Limitations on Debt Issuance
Legal Debt Limits — The State Constitution and RCW 39.36.020 limit the City's ability to incur
indebtedness based on a percentage of the assessed valuation of the taxable property within the
City at the time the debt is incurred. Specifically, the City's unlimited tax general obligation
indebtedness(subject to 60%voter approval) is limited to 2.5 percent of the City's assessed value
for general purposes, with an additional 2.5 percent of assessed value for certain utility purposes
and an additional 2.5 percent of assessed value for open space, park facilities and capital facilities
associated with economic development. Accordingly, the City's total general obligation
indebtedness for all purposes may not exceed 7.5 percent of the City's assessed valuation.
Within the 2.5 percent of assessed value for general purposes, the City may, without voter
approval, incur general obligation indebtedness in an amount not to exceed 1.5 percent of
assessed value.
In calculating the City's legal debt limit, the City will consult with its legal advisors to determine
whether particular obligations are to be treated as debt within the statutory and constitutional
limits.
Ethical Standards Governing Conduct
The City's officers and elected officials will adhere to standards of conduct as stipulated by the
following:
• Adopted City policies, ordinances, and resolutions and the City Code,
• Code of Ethics for Municipal Officers Act, chapter 42.23 ROW; and
• Applicable federal laws, rules and regulations.
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City of Yakima Debt Policy Adopted 11/7/2023
Section III. Roles and Responsibilities
Legislative Authority— It is the responsibility of the City Council to:
• Approve this Debt Policy;
• Approve projects to be financed;
• Adopt ordinances authorizing the issuance of indebtedness and, if appropriate,
designate authority to approve the final sale to a designated representative within the
parameters for delegation under chapter 39.46 RCW; and
• Approve budgets sufficient to provide for the timely payment of principal and interest on
all debt.
Director of Finance & Budget Authority - Primary responsibility for debt management is
delegated to the Director of Finance & Budget or designee, with City Manager oversight. The
Director of Finance & Budget or designee shall be responsible for the following:
Overall Debt Management
• Apply and promote prudent fiscal practices;
• Maintain a current database with all outstanding debt;
• In consultation with the City Attorney, municipal advisor, and bond counsel, determine the
most appropriate debt instrument for a proposed sale;
• Determine and inform the City Council of the debt capacity;
• Provide for the issuance of debt at the lowest possible cost and risk;
• Provide for the issuance of debt at appropriate intervals and in reasonable amounts as
required to fund approved capital expenditures;
• Monitor opportunities to refund debt and recommend such refunding as appropriate;
• Comply with all terms, conditions and disclosure required by the legal documents
governing the debt issued, including policies and procedures relating to City debt;
• Provide for the distribution of pertinent information to rating agencies;
• Comply with all Internal Revenue Service (IRS), Securities and Exchange Commission
(SEC), and Municipal Securities Rulemaking Board (MSRB) rules and regulations
governing the issuance of debt;
• Provide for the timely payment of principal of and interest on all debt, ensure that the fiscal
agent receives funds for payment of debt service on or before the payment date; and
• Distribute to the "Electronic Municipal Market Access" (EMMA) system information
regarding financial condition and affairs at such times and in the form required by law,
regulation, City policies and procedures, and general practice, including Rule 15c2-12
regarding continuing disclosure.
Debt Issuance
• Recommend to the City Council the type of debt to issue and the manner of sale of debt;
• Assist bond counsel with drafting an ordinance for submission to the City Council that
authorizes debt and establishes parameters for the issuance and sale of such obligations;
• Develop a financing structure for a particular bond issue that minimizes the cost and risk
to the City, within the parameters set by the authorizing ordinance/resolution; and
• Provide for and participate in the preparation, review, and approval of offering documents
and disclosure documents.
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City of Yakima Debt Policy Adopted 11/7/2023
Section IV. Professional Services
Professional Services
The Director of Finance & Budget shall procure professional services as necessary to execute
financing transactions and to advise on non-transaction related work. Such professional services
may include those provided by municipal advisors, legal counsel (bond, disclosure and tax
counsel) and underwriters (collectively, the "Finance Team"), as well as other service providers,
such as rating agencies, trustees or escrow agents, verification agents, printers, arbitrage rebate
calculation firms, bidding agents, and credit enhancement providers.
Selection Process - The selection of financial and legal professionals to assist the Director of
Finance & Budget in carrying out financing programs must be consistent with procurement
procedures required by federal, state or local law, or by local policy. If not required by federal,
state or local law or policy, the Director of Finance & Budget may elect to use a competitive bid
process involving a Request for Proposals (RFP), Request for Qualifications (RFQ), or similar
process.
Appointment of Municipal Advisor- The Director of Finance & Budget may select a municipal
advisor (or advisors) to assist in the issuance and administration of all debt if sufficient in-house
expertise is not available. The firm(s)the City selects as municipal advisor will provide a full range
of advisory services in connection with the City's financing programs, and must be duly registered
under applicable MSRB rules.
A municipal advisor under contract with the City will not purchase or sell any City debt.
The Director of Finance & Budget shall monitor the services provided by the municipal advisor.
Appointment of Bond Counsel - Bond counsel renders an opinion on the legality and validity of
an offering of debt, the security for the offering, and whether and to what extent interest on the
debt is exempt from federal income tax.
All debt issued by the City shall be accompanied by a written opinion by legal counsel affirming
that the City is authorized to issue the proposed debt, that the City has met all federal, state, and
local legal requirements necessary for issuance and, where applicable, a determination of the
proposed debt's federal income tax status. This approving opinion and other documents relating
to the issuance of debt shall be prepared by a nationally recognized legal firm with extensive
experience in public finance and tax issues, significant operations in the State and experience
with State law.
The firm selected as bond counsel may be engaged to provide the full range of legal services
require in connection with a) the issuance and delivery of particular bond issues and b) on-going
legal services for the City financing programs, including advising the City on compliance with
regulatory requirements.
The City Manager or Director of Finance & Budget shall submit to the City Council a
recommendation for the appointment of bond counsel(s). The recommendation shall be
accompanied by an evaluation of options and a justification for the recommended course of
action. The Director of Finance & Budget shall monitor the services rendered by the bond
counsel(s).
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City of Yakima Debt Policy Adopted 11/7/2023
A bond counsel under contract with the City will not simultaneously represent any other party
involved in the City's financing, unless the City provides a written waiver of the conflict in writing.
Appointment of Disclosure Counsel ("Disclosure Counsel")—In order to comply with federal
securities laws in connection with disclosure to investors, the City may retain the services of a
disclosure counsel. Disclosure counsel advises on federal securities laws and at the conclusion
of certain debt, will deliver a letter to the City addressing federal securities laws. The City may
appoint bond counsel to provide the services of disclosure counsel, or appoint separate disclosure
counsel, at its discretion.
Appointment of Underwriters - If the City Council approves a negotiated sale under Section V
below, the City shall select an underwriter(s). The primary role of the underwriter in a negotiated
sale is to market the debt to investors and purchase the debt from the City. The City's selection
of underwriters may be based upon a competitive evaluation of proposals submitted in response
to a Request for Proposals.
Criteria used in the appointment of qualified underwriters shall include, but not be limited to:
• Demonstrated ability serving on financial transactions with similar complexity to the
transaction being planned;
• Demonstrated ability to structure a debt issue efficiently and effectively;
• Demonstrated ability to sell debt to institutional and retail investors;
• Demonstrated ability to put capital at risk;
• Experience and reputation of assigned personnel; and
• Fees and expenses.
Prior to starting work on a particular financing, the underwriter shall provide a complete and
detailed list of all proposed fees and expenses, including, but not limited to takedown,
management fees, and itemized not-to-exceed underwriting expenses to be paid by the City. The
underwriting expense component must be discussed and reviewed by the Director of Finance &
Budget prior to the day of pricing and finalized and approved on or before the day of pricing.
The Director of Finance & Budget with assistance from the independent municipal advisor, if
applicable, shall monitor the services rendered by the underwriter(s).
Appointment of Arbitrage Rebate Calculation Firm —The City shall, when deemed necessary,
procure the services of an arbitrage rebate calculation firm. The purpose of the arbitrage rebate
calculation firm is to provide arbitrage rebate compliance services in accordance with the Code.
Criteria used in the appointment of a qualified arbitrage rebate calculation firm shall include, but
not be limited to:
• Firm's qualifications and experience in providing arbitrage rebate calculation services;
• Staff qualifications, tax expertise, and experience;
• Demonstrated ability to provide timely reports; and
• Cost of services.
In selecting an arbitrage rebate calculation firm, the City may seek advice from its bond counsel
and/or municipal advisor.
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City of Yakima Debt Policy Adopted 11/7/2023
Section V. Transaction-Specific Policies
Method of Sale for Public Sales
The Director of Finance& Budget shall select a method of public sale that is most likely to achieve
the lowest cost of borrowing while considering both short-range and long-range implications for
taxpayers and ratepayers, based on a thorough analysis of the relevant rating, security, structure,
market conditions, and other factors pertaining to the proposed issue.
Competitive Bid Method - Debt issued on a competitive bid basis will be sold to the bidder
offering the lowest true interest cost to the City, subject to the terms of the notice of sale.
Negotiated Sale Method —When market conditions or special complexity or other features of a
debt issuance may cause the debt issuance to be less suited for sale by the competitive bid
method, the City may issue debt on a negotiated basis to one or more underwriters.
If the City sells debt on a negotiated basis, the negotiations of terms and conditions shall include,
but not be limited to, prices, interest rates, yields, priority of orders, and underwriting or
remarketing fees.
The Director of Finance & Budget, with the assistance of its municipal advisor, shall evaluate the
terms offered by the underwriting team. Evaluations of prices, interest rates, yields, and fees shall
include prevailing terms and conditions in the marketplace for comparable issuers.
If the City includes more than one underwriter in the negotiated sale of debt, the Director of
Finance & Budget shall establish appropriate levels of underwriting liability and the method of
allocating compensation among the members of the underwriting group.
The City shall require a post-sale analysis and reporting for each negotiated bond sale. The
underwriter shall perform such analysis and provide a final pricing book by the day of the closing.
A post-sale analysis will include, but not be limited to:
• Summary of the pricing, including copies of the actual pricing wires;
• Results of comparable bond sales in the market at the time of the City's pricing;
• Historic comparisons to Municipal Market Data indexes -- day of sale basis; and
• Details of orders and allotments.
No debt issue will be sold on a negotiated basis without the participation of an independent
registered municipal advisor.
Method of Sale for Direct Purchases
When deemed appropriate to minimize the costs and risks of the City's debt issue, including to
facilitate a debt issuance of small size or having other characteristics which may cause the debt
issuance to be less suited to sale in a public offering, whether by competitive bid or negotiated
sale, the Director of Finance and Budget may recommend to the City Council that the debt be
sold directly to a purchaser. Purchasers may include banks, the State through its lending
programs, the federal government through its lending programs, or other direct purchasers.
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City of Yakima Debt Policy Adopted 11/7/2023
Debt Structural Elements
Maturity—The City shall issue debt with an average maturity that is not longer than the weighted
average reasonably expected economic life of the assets being financed. In any case, the City
shall not issue debt with a maturity longer than 30 years unless approved by the City Council.
Debt Service Structure - Unless otherwise justified, in consultation with Bond Counsel,
Underwriter and/or Financial Advisor, debt service should be structured on a level or declining
repayment basis. Refunding bonds issued to achieve interest cost savings should typically be
structured to produce approximately level savings in each fiscal year. Unless otherwise justified,
debt shall not have capitalized interest. If appropriate or required by applicable bond covenants,
debt service reserve funds may be used.
Coupon Type—Unless otherwise justified, in consultation with Bond Counsel, Underwriter and/or
Financial Advisor, long-term debt will be sold with maturities paying interest on a periodic basis.
Redemption Features - For each transaction, the Director of Finance & Budget shall evaluate
the costs and benefits of call provisions.
Maturity Structure — The City's long-term debt may include serial and term bonds. Unless
otherwise justified, term bonds should be sold with annual mandatory redemption requirements.
Tax-exemption— Unless otherwise justified, the City shall issue its debt on a tax-exempt basis.
Bond Insurance—For each transaction,the Director of Finance&Budget may evaluate the costs
and benefits of bond insurance or other credit enhancements.
Section VI. Compliance Policies
Issuance and Post-Issuance Tax Compliance Policies and Procedures
The Director of Finance & Budget or designee, in consultation with bond counsel and other
members of the Professional Services Team, as appropriate, shall adopt comprehensive
compliance policies and procedures to ensure that the City complies with applicable federal,
State, and contractual requirements regarding the tax status of bonds, notes and other debt, both
at the time of issuance and post-issuance, as necessary to maintain the tax exemption for tax-
exempt debt. The policies and procedures shall provide for monitoring of whether requirements
of the federal arbitrage regulations and the restrictions of the federal private activity bond
regulations applicable to the investment and use of proceeds of tax-exempt bond issuances, as
well as the facilities financed with those proceeds, are being properly observed.
Arbitrage Liability Management
Because of the complexity of arbitrage rebate regulations and the severity of non-compliance
penalties, the Director of Finance & Budget shall solicit the advice of bond counsel and other
qualified experts regarding arbitrage rebate calculations. The Director of Finance & Budget shall,
when deemed necessary or when required, contract with a qualified third-party for preparation of
the arbitrage rebate calculation.
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City of Yakima Debt Policy Adopted 11/7/2023
The Director of Finance & Budget or designee shall maintain an internal record-keeping system
for tracking investments and expenditures of bond proceeds.
Issuance and Post-Issuance Disclosure Policies and Procedures
The Director of Finance & Budget or designee, in consultation with its bond counsel and other
members of the Financing Team, as appropriate, shall adopt comprehensive policies and
procedures relating to the City's disclosure obligations. These include (i) the preparation,
vetting/review and approval of official statements for all public offerings of its securities that must
be delivered to the underwriter for distribution to potential and actual purchasers and that set forth
the terms of the securities and information regarding the City; (ii) compliance with continuing
disclosure obligations entered into by the City pursuant SEC Rule 15c2-12 that require the City
to provide certain annual financial information and event notices to the public; and (iii) ensuring
that if and when the City provides information that can reasonably be expected to be relied on by
the financial market, that such information is not inaccurate or misleading.
The City has committed to provide or cause to be provided, either directly or through a designated
agent, annual disclosure reports and notices regarding the occurrence of certain events specified
by the SEC. These reports and notices will be submitted to the MSRB through EMMA.
Investment of Proceeds
General -The City shall comply with all applicable federal, State, and contractual restrictions
regarding the investment of bond proceeds, including the City's Investment Policy. This
includes compliance with restrictions on the types of investment securities allowed, restrictions
on the allowable yield of some invested funds as well as restrictions on the time period over
which some bond proceeds may be invested.
Arbitrage Compliance - The City will comply with arbitrage requirements on invested tax-
exempt bond proceeds. The Director of Finance & Budget shall consult with bond counsel,
and, if necessary, an arbitrage rebate consultant regarding which actions are necessary to
comply with the arbitrage restrictions and arbitrage rebate requirements of the Code.
Refunding Escrow- Unless otherwise justified and deemed necessary Director of Finance &
Budget shall utilize United States Treasury Securities State and Local Government Series
(SLGS) for investments held in a refunding escrow.
Section VII. Other Policies
Rating Agencies
The Director of Finance & Budget in consultation with its municipal advisor, shall manage
relationships with the rating analysts assigned to the City's credit, using both informal and formal
methods to disseminate information.
Refunding Savings Thresholds
The City will consider refinancing debt to achieve savings as market opportunities arise, and
conduct refunding in accordance with the Refunding Bond Act, chapter 39.53 RCW. Refunding
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City of Yakima Debt Policy Adopted 11/7/2023
may occur on a current basis (within 90 days of the call date of the bonds to be refunded) or an
advance basis (90+ days before the call date of the bonds to be refunded).
Unless otherwise justified, an "advance refunding" transaction (including on a taxable basis or a
tax-exempt basis if authorized by law) will require a minimum present value savings of four
percent of the principal amount of the refunded debt.
Derivative Products
The City will not use derivative products unless permitted by law, and only after adoption of a
swap or derivative policy by the City Council. The City will not use derivative products without an
analysis by an independent municipal advisor. The City will not use derivative products for the
purpose of speculation.
Evaluating the Impact of Capital Program Spending
The Director of Finance & Budget shall evaluate the impact of capital program spending,
operations and maintenance costs, and debt service on its financial condition.
Debt Policy Review
The Director of Finance& Budget or designee shall review and update this debt policy, as
necessary, but not less than once every five years.
10
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a, .
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 13.
For Meeting of: November 7, 2023
ITEM TITLE: Resolution to establish a Debt Financial Policy for the City of
Yakima
SUBMITTED BY: Kimberly Domine, Financial Services Manager
*Rosylen Oglesby,Assistant City Manager/Interim Director of
Finance & Budget
SUMMARY EXPLANATION:
The purposes of this Debt Policy are to set forth comprehensive guidelines for the issuance and
management of all City financings. Establish debt objectives and parameters necessary to safeguard
the City's fiscal health and sustainability. Articulate the City Council's intent for the structure of debt
issuance, governance over City debt and long-term planning. Communicate clear policy and strategy
guidelines for City debt administration. Assure all debt complies with statutes and regulatory
requirements; and to demonstrate to citizens, taxpayers and voters a transparent and accountable
stewardship plan.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution.
ATTACHMENTS:
Description Upload Date Type
❑ Resolution 10/27/2023 Resolution
❑ Debt Policy 11/2/2023 Backup Material
❑ Power Point Presentation 11/1/2023 Presentation
2
RESOLUTION NO. R-2023-
A RESOLUTION establishing a debt policy for the City of Yakima.
WHEREAS, the City of Yakima (hereinafter referred to as City) may periodically have a
need to issue long-term debt; and
WHEREAS, the City deems to ensure that all debt is issued prudently and cost-
effectively; and
WHEREAS, the City desires to maintain a sound debt position and protect the credit
quality of its obligations; and
WHEREAS, the City desires to set forth guidelines for the issuance and management of
all financing of the City; and
WHEREAS, the City used the guidelines provided by the Washington Public Treasures
Association to establish a debt policy; and
WHEREAS, the City Council is authorized to create its own policies as to how to
manage debt; and
WHEREAS, the City Council finds that it is in the best interest of the City and its
residents to adopt a Debt Policy; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City of Yakima's Debt Policy, attached hereto and incorporated herein by this
reference, shall be effective as of the date of this Resolution.
ADOPTED BY THE CITY COUNCIL this 7th day of November, 2023.
Janice Deccio, Mayor
ATTEST:
Rosalinda Ibarra, City Clerk
3
CITY OF YAKIMA
DEBT POLICY
W PTA h:1
CERTIFICATE OF EXCELLENCE
CITY OF YAKIMA
ADOPTED BY CITY COUNCIL
11 -7-2023
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City of Yakima Debt Policy Adopted 11/7/2023
TABLE OF CONTENTS
SECTION I. INTRODUCTION 1
SECTION II. GOVERNING PRINCIPLES 1
SECTION III. ROLES AND RESPONSIBILITIES 3
SECTION IV. PROFESSIONAL SERVICES 4
SECTION V. TRANSACTION-SPECIFIC POLICIES 6
SECTION VI. COMPLIANCE POLICIES 8
SECTION VII. OTHER POLICIES 9
1
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City of Yakima Debt Policy Adopted 11/7/2023
City of T06:04.4
ADMINISTRATIVE POLICIES Policy Number: XX- xxx
Y;, A, Department: Finance Authorized by: City Council
.... Effective Date: 01/01/2023 Supersedes: New Policy
Section I. Introduction
Purpose and Overview
The purposes of this Debt Policy ("Policy") of the City of Yakima ("City") are:
• To set forth comprehensive guidelines for the issuance and management of all City
financings;
• To establish debt objectives and parameters necessary to safeguard the City's fiscal
health and sustainability;
• To articulate the City Council's intent for the structure of debt issuance, governance over
City debt and long-term planning;
• To communicate clear policy and strategy guidelines for City debt administration;
• To assure all debt complies with statutes and regulatory requirements; and
• To demonstrate to citizens, taxpayers and voters a transparent and accountable
stewardship plan.
Adherence to this Policy is essential to ensure that the City issues debt prudently and cost
effectively, maintains a sound debt position, and protects the credit quality of its obligations.
Section II. Governing Principles
In the issuance and management of debt, the City shall comply with the Constitution of
Washington State (the "State") and with all other legal requirements imposed by federal, state,
and local laws, rules and regulations, as applicable. The following section highlights the legal
framework of the debt issuance.
Governing Law
State Law - The City may contract indebtedness as provided for by chapter 35.22 RCW and the
City Charter, Article XII, Section 1. General obligation indebtedness secured by and payable from
City tax revenues is subject to the debt limitations in RCW 39.36.020 and Article VIII of the State
Constitution. Indebtedness secured by and payable from enterprise revenues (e.g., revenue
bonds) or from special assessments are not subject to constitutional or statutory limitations. The
City shall issue and sell bonds evidencing indebtedness in accordance with chapter 39.46 RCW,
and shall issue and sell refunding bonds in accordance with chapter 39.53 RCW.
1
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City of Yakima Debt Policy Adopted 11/7/2023
Federal Laws, Rules and Regulations - The City shall issue and manage debt in accordance
with applicable federal laws, rules, and regulations, including the Internal Revenue Code of 1986,
as amended (the "Code"), the Securities Act of 1933, and the Securities Exchange Act of 1934,
together with proposed, temporary and final regulations promulgated, and official public guidance
published, under these laws, as applicable. The City has instituted and shall comply with its
separate policies and procedures relating to its obligations under the Code and securities laws in
connection with its obligations.
Local Laws and Regulations - The City shall issue and manage debt in accordance with the
limitations and constraints imposed by local rules and regulations, including the City Charter and
City Municipal Code.
Permitted Debt by Type
Subject to changes in State law, the City may legally issue debt using only the debt instruments
described below:
Unlimited Tax General Obligation Bonds — The City is authorized to issue Unlimited Tax
General Obligation Bonds under State law, subject to City Council approval and approval of the
voters within the jurisdiction of the City as required by law. Unlimited Tax General Obligation
Bonds may be issued for any capital purpose approved by the voters, other than the replacement
of equipment.
Limited Tax General Obligation Bonds — The City is authorized to issue Limited Tax General
Obligation Bonds under State law, subject to City Council approval. Limited Tax General
Obligation Bonds may be issued under State law for any lawful City purpose.
Revenue Bonds—The City is authorized to issue revenue bonds under State law, subject to City
Council approval. Revenue bonds may be issued to finance construction or improvements to
facilities of enterprise systems operated by the City in accordance with the Capital Improvement
Program and are generally payable from the enterprise. No taxing power or general fund pledge
is provided as security. Unlike general obligation bonds, revenue bonds are not subject to the
City's statutory debt limitation nor is voter approval required.
Short Term Debt — The City is authorized to issue short term debt under State law, including
bond anticipation notes or other evidences of indebtedness, subject to City Council approval.
Special Assessment Bonds/LID Bonds — The City is authorized to issue special assessment
bonds, including but not limited to local improvement district bonds under chapter 35.22 RCW,
subject to City Council approval after appropriate formation of a special assessment district.
Special assessment bonds represent debt that is repaid by the property owners who benefited
from the capital improvement through annual assessments paid to the City.
Local Option Capital Asset Lending ("LOCAL") Program Debt — The City is authorized to
enter into financing contracts with the Office of the State Treasurer under chapter 39.94 RCW
and the LOCAL program, subject to City Council approval.
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City of Yakima Debt Policy Adopted 11/7/2023
Public Works Trust Fund ("PWTF") Loans — The City is authorized to enter into loan
agreements with the Public Works Board under chapter 43.155 RCW, subject to City Council
approval.
Other Debt Instruments - The City is authorized to enter into capital leases, conditional sales
contracts, and other forms of debt instruments subject to State law and the approval of the City
Council.
The City is authorized to enter into intergovernmental loans such as a Supporting Investment in
Economic Development (SIED) loan subject to City Council approval.
Purpose for Borrowing
The City shall issue long-term debt solely for the purpose of financing or refinancing the cost of
design, acquisition and/or construction of long-lived capital projects or to refund outstanding debt.
Debt can be used to equalize the cost of a capital need over the useful life of the capital item.
Long-term debt will not be used to support current operations.
Limitations on Debt Issuance
Legal Debt Limits — The State Constitution and RCW 39.36.020 limit the City's ability to incur
indebtedness based on a percentage of the assessed valuation of the taxable property within the
City at the time the debt is incurred. Specifically, the City's unlimited tax general obligation
indebtedness (subject to 60% voter approval) is limited to 2.5 percent of the City's assessed value
for general purposes, with an additional 2.5 percent of assessed value for certain utility purposes
and an additional 2.5 percent of assessed value for open space, park facilities and capital facilities
associated with economic development. Accordingly, the City's total general obligation
indebtedness for all purposes may not exceed 7.5 percent of the City's assessed valuation.
Within the 2.5 percent of assessed value for general purposes, the City may, without voter
approval, incur general obligation indebtedness in an amount not to exceed 1.5 percent of
assessed value.
In calculating the City's legal debt limit, the City will consult with its legal advisors to determine
whether particular obligations are to be treated as debt within the statutory and constitutional
limits.
Ethical Standards Governing Conduct
The City's officers and elected officials will adhere to standards of conduct as stipulated by the
following:
• Adopted City policies, ordinances, and resolutions and the City Code;
• Code of Ethics for Municipal Officers Act, chapter 42.23 RCW; and
• Applicable federal laws, rules and regulations.
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City of Yakima Debt Policy Adopted 11/7/2023
Section III. Roles and Responsibilities
Legislative Authority— It is the responsibility of the City Council to:
• Approve this Debt Policy;
• Approve projects to be financed;
• Adopt ordinances authorizing the issuance of indebtedness and, if appropriate,
designate authority to approve the final sale to a designated representative within the
parameters for delegation under chapter 39.46 RCW; and
• Approve budgets sufficient to provide for the timely payment of principal and interest on
all debt.
Director of Finance & Budget Authority- Primary responsibility for debt management is
delegated to the Director of Finance & Budget or designee, with City Manager oversight. The
Director of Finance & Budget or designee shall be responsible for the following:
Overall Debt Management
• Apply and promote prudent fiscal practices;
• Maintain a current database with all outstanding debt;
• In consultation with the City Attorney, municipal advisor, and bond counsel, determine the
most appropriate debt instrument for a proposed sale;
• Determine and inform the City Council of the debt capacity;
• Provide for the issuance of debt at the lowest possible cost and risk;
• Provide for the issuance of debt at appropriate intervals and in reasonable amounts as
required to fund approved capital expenditures;
• Monitor opportunities to refund debt and recommend such refunding as appropriate;
• Comply with all terms, conditions and disclosure required by the legal documents
governing the debt issued, including policies and procedures relating to City debt;
• Provide for the distribution of pertinent information to rating agencies;
• Comply with all Internal Revenue Service (IRS), Securities and Exchange Commission
(SEC), and Municipal Securities Rulemaking Board (MSRB) rules and regulations
governing the issuance of debt;
• Provide for the timely payment of principal of and interest on all debt, ensure that the fiscal
agent receives funds for payment of debt service on or before the payment date; and
• Distribute to the "Electronic Municipal Market Access" (EMMA) system information
regarding financial condition and affairs at such times and in the form required by law,
regulation, City policies and procedures, and general practice, including Rule 15c2-12
regarding continuing disclosure.
Debt Issuance
• Recommend to the City Council the type of debt to issue and the manner of sale of debt;
• Assist bond counsel with drafting an ordinance for submission to the City Council that
authorizes debt and establishes parameters for the issuance and sale of such obligations;
• Develop a financing structure for a particular bond issue that minimizes the cost and risk
to the City, within the parameters set by the authorizing ordinance/resolution; and
• Provide for and participate in the preparation, review, and approval of offering documents
and disclosure documents.
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City of Yakima Debt Policy Adopted 11/7/2023
Section IV. Professional Services
Professional Services
The Director of Finance & Budget shall procure professional services as necessary to execute
financing transactions and to advise on non-transaction related work. Such professional services
may include those provided by municipal advisors, legal counsel (bond, disclosure and tax
counsel) and underwriters (collectively, the "Finance Team"), as well as other service providers,
such as rating agencies, trustees or escrow agents, verification agents, printers, arbitrage rebate
calculation firms, bidding agents, and credit enhancement providers.
Selection Process - The selection of financial and legal professionals to assist the Director of
Finance & Budget in carrying out financing programs must be consistent with procurement
procedures required by federal, state or local law, or by local policy. If not required by federal,
state or local law or policy, the Director of Finance & Budget may elect to use a competitive bid
process involving a Request for Proposals (RFP), Request for Qualifications (RFQ), or similar
process.
Appointment of Municipal Advisor- The Director of Finance & Budget may select a municipal
advisor (or advisors) to assist in the issuance and administration of all debt if sufficient in-house
expertise is not available. The firm(s) the City selects as municipal advisor will provide a full range
of advisory services in connection with the City's financing programs, and must be duly registered
under applicable MSRB rules.
A municipal advisor under contract with the City will not purchase or sell any City debt.
The Director of Finance & Budget shall monitor the services provided by the municipal advisor.
Appointment of Bond Counsel - Bond counsel renders an opinion on the legality and validity of
an offering of debt, the security for the offering, and whether and to what extent interest on the
debt is exempt from federal income tax.
All debt issued by the City shall be accompanied by a written opinion by legal counsel affirming
that the City is authorized to issue the proposed debt, that the City has met all federal, state, and
local legal requirements necessary for issuance and, where applicable, a determination of the
proposed debt's federal income tax status. This approving opinion and other documents relating
to the issuance of debt shall be prepared by a nationally recognized legal firm with extensive
experience in public finance and tax issues, significant operations in the State and experience
with State law.
The firm selected as bond counsel may be engaged to provide the full range of legal services
require in connection with a) the issuance and delivery of particular bond issues and b) on-going
legal services for the City financing programs, including advising the City on compliance with
regulatory requirements.
The City Manager or Director of Finance & Budget shall submit to the City Council a
recommendation for the appointment of bond counsel(s). The recommendation shall be
accompanied by an evaluation of options and a justification for the recommended course of
action. The Director of Finance & Budget shall monitor the services rendered by the bond
counsel(s).
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City of Yakima Debt Policy Adopted 11/7/2023
A bond counsel under contract with the City will not simultaneously represent any other party
involved in the City's financing, unless the City provides a written waiver of the conflict in writing.
Appointment of Disclosure Counsel ("Disclosure Counsel") — In order to comply with federal
securities laws in connection with disclosure to investors, the City may retain the services of a
disclosure counsel. Disclosure counsel advises on federal securities laws and at the conclusion
of certain debt, will deliver a letter to the City addressing federal securities laws. The City may
appoint bond counsel to provide the services of disclosure counsel, or appoint separate disclosure
counsel, at its discretion.
Appointment of Underwriters - If the City Council approves a negotiated sale under Section V
below, the City shall select an underwriter(s). The primary role of the underwriter in a negotiated
sale is to market the debt to investors and purchase the debt from the City. The City's selection
of underwriters may be based upon a competitive evaluation of proposals submitted in response
to a Request for Proposals.
Criteria used in the appointment of qualified underwriters shall include, but not be limited to:
• Demonstrated ability serving on financial transactions with similar complexity to the
transaction being planned;
• Demonstrated ability to structure a debt issue efficiently and effectively;
• Demonstrated ability to sell debt to institutional and retail investors;
• Demonstrated ability to put capital at risk;
• Experience and reputation of assigned personnel; and
• Fees and expenses.
Prior to starting work on a particular financing, the underwriter shall provide a complete and
detailed list of all proposed fees and expenses, including, but not limited to takedown,
management fees, and itemized not-to-exceed underwriting expenses to be paid by the City. The
underwriting expense component must be discussed and reviewed by the Director of Finance &
Budget prior to the day of pricing and finalized and approved on or before the day of pricing.
The Director of Finance & Budget with assistance from the independent municipal advisor, if
applicable, shall monitor the services rendered by the underwriter(s).
Appointment of Arbitrage Rebate Calculation Firm —The City shall, when deemed necessary,
procure the services of an arbitrage rebate calculation firm. The purpose of the arbitrage rebate
calculation firm is to provide arbitrage rebate compliance services in accordance with the Code.
Criteria used in the appointment of a qualified arbitrage rebate calculation firm shall include, but
not be limited to:
• Firm's qualifications and experience in providing arbitrage rebate calculation services;
• Staff qualifications, tax expertise, and experience;
• Demonstrated ability to provide timely reports; and
• Cost of services.
In selecting an arbitrage rebate calculation firm, the City may seek advice from its bond counsel
and/or municipal advisor.
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City of Yakima Debt Policy Adopted 11/7/2023
Section V. Transaction-Specific Policies
Method of Sale for Public Sales
The Director of Finance& Budget shall select a method of public sale that is most likely to achieve
the lowest cost of borrowing while considering both short-range and long-range implications for
taxpayers and ratepayers, based on a thorough analysis of the relevant rating, security, structure,
market conditions, and other factors pertaining to the proposed issue.
Competitive Bid Method - Debt issued on a competitive bid basis will be sold to the bidder
offering the lowest true interest cost to the City, subject to the terms of the notice of sale.
Negotiated Sale Method —When market conditions or special complexity or other features of a
debt issuance may cause the debt issuance to be less suited for sale by the competitive bid
method, the City may issue debt on a negotiated basis to one or more underwriters.
If the City sells debt on a negotiated basis, the negotiations of terms and conditions shall include,
but not be limited to, prices, interest rates, yields, priority of orders, and underwriting or
remarketing fees.
The Director of Finance & Budget, with the assistance of its municipal advisor, shall evaluate the
terms offered by the underwriting team. Evaluations of prices, interest rates, yields, and fees shall
include prevailing terms and conditions in the marketplace for comparable issuers.
If the City includes more than one underwriter in the negotiated sale of debt, the Director of
Finance & Budget shall establish appropriate levels of underwriting liability and the method of
allocating compensation among the members of the underwriting group.
The City shall require a post-sale analysis and reporting for each negotiated bond sale. The
underwriter shall perform such analysis and provide a final pricing book by the day of the closing.
A post-sale analysis will include, but not be limited to:
• Summary of the pricing, including copies of the actual pricing wires;
• Results of comparable bond sales in the market at the time of the City's pricing;
• Historic comparisons to Municipal Market Data indexes -- day of sale basis; and
• Details of orders and allotments.
No debt issue will be sold on a negotiated basis without the participation of an independent
registered municipal advisor.
Method of Sale for Direct Purchases
When deemed appropriate to minimize the costs and risks of the City's debt issue, including to
facilitate a debt issuance of small size or having other characteristics which may cause the debt
issuance to be less suited to sale in a public offering, whether by competitive bid or negotiated
sale, the Director of Finance and Budget may recommend to the City Council that the debt be
sold directly to a purchaser. Purchasers may include banks, the State through its lending
programs, the federal government through its lending programs, or other direct purchasers.
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City of Yakima Debt Policy Adopted 11/7/2023
Debt Structural Elements
Maturity—The City shall issue debt with an average maturity that is not longer than the weighted
average reasonably expected economic life of the assets being financed. In any case, the City
shall not issue debt with a maturity longer than 30 years unless approved by the City Council.
Debt Service Structure - Unless otherwise justified, in consultation with Bond Counsel,
Underwriter and/or Financial Advisor, debt service should be structured on a level or declining
repayment basis. Refunding bonds issued to achieve interest cost savings should typically be
structured to produce approximately level savings in each fiscal year. Unless otherwise justified,
debt shall not have capitalized interest. If appropriate or required by applicable bond covenants,
debt service reserve funds may be used.
Coupon Type—Unless otherwise justified, in consultation with Bond Counsel, Underwriter and/or
Financial Advisor, long-term debt will be sold with maturities paying interest on a periodic basis.
Redemption Features - For each transaction, the Director of Finance & Budget shall evaluate
the costs and benefits of call provisions.
Maturity Structure — The City's long-term debt may include serial and term bonds. Unless
otherwise justified, term bonds should be sold with annual mandatory redemption requirements.
Tax-exemption — Unless otherwise justified, the City shall issue its debt on a tax-exempt basis.
Bond Insurance—For each transaction, the Director of Finance& Budget may evaluate the costs
and benefits of bond insurance or other credit enhancements.
Section VI. Compliance Policies
Issuance and Post-Issuance Tax Compliance Policies and Procedures
The Director of Finance & Budget or designee, in consultation with bond counsel and other
members of the Professional Services Team, as appropriate, shall adopt comprehensive
compliance policies and procedures to ensure that the City complies with applicable federal,
State, and contractual requirements regarding the tax status of bonds, notes and other debt, both
at the time of issuance and post-issuance, as necessary to maintain the tax exemption for tax-
exempt debt. The policies and procedures shall provide for monitoring of whether requirements
of the federal arbitrage regulations and the restrictions of the federal private activity bond
regulations applicable to the investment and use of proceeds of tax-exempt bond issuances, as
well as the facilities financed with those proceeds, are being properly observed.
Arbitrage Liability Management
Because of the complexity of arbitrage rebate regulations and the severity of non-compliance
penalties, the Director of Finance & Budget shall solicit the advice of bond counsel and other
qualified experts regarding arbitrage rebate calculations. The Director of Finance & Budget shall,
when deemed necessary or when required, contract with a qualified third-party for preparation of
the arbitrage rebate calculation.
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City of Yakima Debt Policy Adopted 11/7/2023
The Director of Finance & Budget or designee shall maintain an internal record-keeping system
for tracking investments and expenditures of bond proceeds.
Issuance and Post-Issuance Disclosure Policies and Procedures
The Director of Finance & Budget or designee, in consultation with its bond counsel and other
members of the Financing Team, as appropriate, shall adopt comprehensive policies and
procedures relating to the City's disclosure obligations. These include (i) the preparation,
vetting/review and approval of official statements for all public offerings of its securities that must
be delivered to the underwriter for distribution to potential and actual purchasers and that set forth
the terms of the securities and information regarding the City; (ii) compliance with continuing
disclosure obligations entered into by the City pursuant SEC Rule 15c2-12 that require the City
to provide certain annual financial information and event notices to the public; and (iii) ensuring
that if and when the City provides information that can reasonably be expected to be relied on by
the financial market, that such information is not inaccurate or misleading.
The City has committed to provide or cause to be provided, either directly or through a designated
agent, annual disclosure reports and notices regarding the occurrence of certain events specified
by the SEC. These reports and notices will be submitted to the MSRB through EMMA.
Investment of Proceeds
General - The City shall comply with all applicable federal, State, and contractual restrictions
regarding the investment of bond proceeds, including the City's Investment Policy. This
includes compliance with restrictions on the types of investment securities allowed, restrictions
on the allowable yield of some invested funds as well as restrictions on the time period over
which some bond proceeds may be invested.
Arbitrage Compliance - The City will comply with arbitrage requirements on invested tax-
exempt bond proceeds. The Director of Finance & Budget shall consult with bond counsel,
and, if necessary, an arbitrage rebate consultant regarding which actions are necessary to
comply with the arbitrage restrictions and arbitrage rebate requirements of the Code.
Refunding Escrow - Unless otherwise justified and deemed necessary Director of Finance &
Budget shall utilize United States Treasury Securities State and Local Government Series
(SLGS) for investments held in a refunding escrow.
Section VII. Other Policies
Rating Agencies
The Director of Finance & Budget in consultation with its municipal advisor, shall manage
relationships with the rating analysts assigned to the City's credit, using both informal and formal
methods to disseminate information.
Refunding Savings Thresholds
The City will consider refinancing debt to achieve savings as market opportunities arise, and
conduct refunding in accordance with the Refunding Bond Act, chapter 39.53 RCW. Refunding
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City of Yakima Debt Policy Adopted 11/7/2023
may occur on a current basis (within 90 days of the call date of the bonds to be refunded) or an
advance basis (90+ days before the call date of the bonds to be refunded).
Unless otherwise justified, an "advance refunding" transaction (including on a taxable basis or a
tax-exempt basis if authorized by law) will require a minimum present value savings of four
percent of the principal amount of the refunded debt.
Derivative Products
The City will not use derivative products unless permitted by law, and only after adoption of a
swap or derivative policy by the City Council. The City will not use derivative products without an
analysis by an independent municipal advisor. The City will not use derivative products for the
purpose of speculation.
Evaluating the Impact of Capital Program Spending
The Director of Finance & Budget shall evaluate the impact of capital program spending,
operations and maintenance costs, and debt service on its financial condition.
Debt Policy Review
The Director of Finance & Budget or designee shall review and update this debt policy, as
necessary, but not less than once every five years.
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City Council Business Meeting
November 7, 2023
Overview
The purpose of the presentation is to provide a
summary of the proposed new debt policy.
Pg. 2• City Council Business Meeting•Review of Proposed New Debt Policy •November 7,2023
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Purpose
Municipal Research and Services Center (MRSC) states that effective
financial policies are essential to the fiscal health of the jurisdiction ,
and they help elected officials, management, and staff make the right
decisions for now and in the future.
The City of Yakima has a policy for all items except Debt
Management.
List of current policies:
• Financial Policies Overview Asset Management
• Cost Allocation
• Credit Card Use
• Fund Balance and Reserve
Policies
• Investment
• Travel and Expense Reimbursement
Pg.3•City Council Business Meeting•Review of Proposed New Debt Policy •November 7,2023
. r'J'
Purpose continued . . .
• A Debt Management Policy:
• Articulate the city's goals with respect to debt;
• Enhances the ability to make decisions on issuing or entering into debt
obligations;
• Exhibit a commitment to long-term financial planning, ensuring fiscal prudence
and financial stability; and
• Demonstrates to rating agencies and lenders that the
city is well-managed and, therefore, likely to meet its
debt obligations.
SUCCESSnm
FREEDOrI!
DEBT
...............
Source:https://mrsc.org/exelore-topics/finance/debt/debt-management olicies
Pg.4•City Council Business Meeting•Review of Proposed New Debt Policy •November 7,2023
Debt Policy
• Created following
the template and guidelines the Washington Public
Treasures Association (WPTA) provided.
• Best Practices from the Government Finance Officers Association (GFOA) were also
considered.
• Other Municipalities' Debt Policies were reviewed.
• Conducted a peer review process.
• Director of Budget and Finance — City of Yakima
• Director of Budget and Finance — Federal Way
• Bond Council — Deanna Gregory
• Submitted the policy to the WPTA Certification Program.
• Reviewed by a board of professionals.
• Approved for Certification.
• WPTA Comment: "Overall a great policy. It seems to provide a good balance
between constraints and flexibility. And seems appropriate for the type and size of
the issuer.
Pg.5•City Council Business Meeting•Review of Proposed New Debt Policy•November 7,2023 o ,
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