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HomeMy WebLinkAbout8 Title 3 Consideration of Adopting Policy Changes ACTION ITEM #8 Finance & AccountingDistrict Code Title 3, 20 Amending -2018Consideration of Adopting Resolution Finance & AccountingDistrict Code Title 3, 20 Amending -2018Consideration of Adopting Resolution September 5, 2018 Amending District Code, Title 3, Finance & Accounting Implement best operating practices•Comply with Senate Bill 1029•Code revisions are needed due to•2011Financial goals were last reviewed on August 3, •Reserves•Debt•Revenue•Planning•In 2004, the Board adopted a set of financial goals•BACKGROUND / HISTORY Amending District Code, Title 3, Finance & Accounting NEW INFORMATION Effective January 1, 2017•Required District local goals and policies document•Increased reporting requirements•Code section 8855 concerning public debtCalifornia Senate Bill 1029 implemented changes to Government •AccountingAmending District Code, Title 3, Finance & AccountingAmending District Code, Title 3, Finance & NEW INFORMATION proceduresInternal control •Policy goals related to the issuer’s planning goals and objectives•How the debt supports the issuer’s capital improvement plan•Types of debt that may be issued•for which debt proceeds may be usedPurposes •a debt management policy that includesNew debt •Amending District Code, Title 3, Finance & AccountingAmending District Code, Title 3, Finance & Accounting NEW INFORMATION Amending District Code, Title 3, Finance & AccountingAmending District Code, Title 3, Finance & Accounting Code Revisions Updated Employee TitlesUpdated Operating ProtocolManagementCh apter on Debt Issuance and NewUpdated Financial Goals for Debt NEW INFORMATION Refunding and restructuring outstanding debt•Priority for certain projects •Public purpose must be clearly articulated•based financings-Land•Finance capital facilities•urposepebt dPolicy defines •Amending District Code, Title 3, Finance & AccountingAmending District Code, Title 3, Finance & Accounting NEW INFORMATION Assessment districts•Community facilities districts•Certificates of participation•Revenue bonds•General obligation bonds•Types of debt include (but not limited to)•Amending District Code, Title 3, Finance & AccountingAmending District Code, Title 3, Finance & Accounting NEW INFORMATION 10% of the bond proceeds•125% of annual average debt service or•Reserve fund required for the lesser of•sale of 50% of units-Residential only projects require pre•leased or Letter of Credit-preCommercial and mixed use projects require 50% of rentable space •equityLetter of Credit shall be required where one owner holds 25% or more •4:1debt ratio minimum shall be -to-Value•Proposed District equity requirements•AccountngAmending District Code, Title 3, Finance & AccountngAmending District Code, Title 3, Finance & NEW INFORMATION management goals in accordance with policyFuture financing needs will be evaluated against District debt •1029Senate Bill #by policy Debt •& AccountingAmending District Code, Title 3, Finance & AccountingAmending District Code, Title 3, Finance FISCAL IMPACT Amending District Code, Title 3, Finance and AccountingAmending District Code, Title 3, Finance and Accounting There is no fiscal impact associated with this item• RECOMMENDATION Amending District Code, Title 3, Finance and AccountingAmending District Code, Title 3, Finance and Accounting CounselAccounting, as substantially proposed and approved by District 20, amending District Code, Title 3, Finance and -Adopt Resolution 2018•