The County Department Financial Services (DFS) updated the Policy on Borrowing, Debts, and Obligations (Attachment B) in February 2018 to include an annual reporting requirement to the Board of Supervisors. The updates to the policy at that time were completed in order to comply with additional obligations required by Senate Bill 1029 requiring various elements be part of the debt policy and to comply with best practices published by the Government Finance Officer's Association (GFOA).
The reporting requirements in the policy include reporting on the outstanding debts by category, long-term obligations and solutions, and debt load expressed through various financial ratios. These financial ratios are closely reviewed prior to new or additional debt issuances to ensure debt levels remain within these prescribed tolerances. The ratios are set in order to help promote good fiscal management and aid in obtaining strong credit ratings from Nationally Recognized Statistical Rating Organizations.
The Treasury and Revenues Division of DFS has summarized the reporting requirements in Attachment A (2021 Annual Debt Report) in accordance with the policy requirements. Overall, the report concludes the following:
- The County had $83.3 million in outstanding debt related items as of June 30, 2021
- Financial ratios are within prescribed tolerances and remain in compliance with the Policy on Borrowing, Debts, and Obligations
- 100% compliance with annual debt compliance and covenants specified in County debt documents
The 2022-2026 Capital Improvement Plan (CIP) included multiple projects for the Integrated Waste Management Division of the Department of Community Services that required debt financing. Efforts to secure financing is underway and is targeted to close in May of 2022 for an amount of $10.1 million.
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