Agenda Date: 07/21/2026
Subject:
Title
Resolution 41-2026: Adopting the City's Debt Management Policy and Procedure
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Laurie Matta, Finance Director
Presentations:
N/A
PURPOSE:
To provide a financial framework for funding of our capital improvement program over a 35-year period using all available cash and debt financial tools.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The City's current debt management policy provides guardrails for issuing debt but doesn't provide a plan for sequencing debt and considering different types of debt collectively and in aggregate. A comprehensive debt management policy and procedure has been developed and reviewed by the City's Financial Advisor. This policy and procedure will assist the City in guiding future funding needs as the City improves and expands its infrastructure.
BACKGROUND:
The City has a significant backlog of capital improvements. Council has heard presentations of the need to improve Main Street, the Belleview Service Center, Town Hall Arts Center, numerous large transportation projects, and the emerging facilities master plan. In order to move these projects and others along the City needs clear guidance related to tools available and guardrails to ensure the financial stability of the City and financial practices that are consistent with Council's policy preferences.
Prior Actions or Discussions
On April 28, 2026, the City Council heard a presentation of the proposed debt management policy and procedure at a study session. Based on feedback the policy has been updated to reflect guidance provided. We changed the maximum debt service for governmental funds from 15% to 10% of revenues and the annual debt service coverage ratio for enterprise funds from 1.1 times to 1.2 times.
FISCAL IMPACTS:
No immediate financial impact but provides guidance for the future funding options.
STAFF RECOMMENDATION:
Approval of this policy a...
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