Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
APRIL 14, 2021
Subject
SUBJECT: DEBT POLICY
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
ADOPT the Debt Policy (included as Attachment A).
Issue
ISSUE
The Debt Policy recommends that it be reviewed periodically and presented to the Board for approval of changes. State law requires California issuers submit a report of proposed debt issuance to the California Debt and Investment Advisory Commission (CDIAC) no later than 30 days prior to the sale of any debt issue. Effective 2017, California legislation requires the report of proposed debt issuance include a certification by the issuer that it has adopted a debt policy.
Background
BACKGROUND
The Debt Policy provides guidelines for the issuance and management of debt issued by the Los Angeles County Metropolitan Transportation Authority ("LACMTA"). The policy confirms the commitment of the Board, management, staff, advisors and other decision makers to adhere to sound financial management practices, including full and timely repayment of all borrowings, achieving the lowest possible cost of capital within prudent risk parameters and encouraging the use of small business enterprises ("SBE"), service disabled veteran business enterprises ("DVBE"), local and disadvantaged business enterprises ("DBE") advisors and underwriters when appropriate and in accordance with the LACMTA procurement policy.
Discussion
DISCUSSION
The purpose of the Debt Policy is to establish guidelines for the issuance and management of our debt. The proposed changes to the Debt Policy reflect changes in debt issuance and disclosure standards and practices. Other changes include edits to reflect appropriate titles and edits made to clarify language and improve readability.
POLICY IMPLICATIONS
The Debt Policy governs the management of our overall debt program. The policy sets the guidelines to be used when considering the use of debt, as well as in th...
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