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Council establishes separate certificate of obligation fund and adopts city debt policy; requests quarterly drawdown reports
Summary
Council approved establishment of a dedicated fund for proceeds from the Series 2025 certificates of obligation, created an interest and sinking fund, adopted a city debt policy, and unanimously passed an ordinance requiring quarterly reports on drawdowns and use of funds.
The City Council approved measures Monday to manage proceeds and debt for the Series 2025 certificates of obligation and adopted a formal debt policy.
Staff recommended creating a separate fund to hold certificate of obligation proceeds so those proceeds are not commingled with other city funds and are used only for the purposes set out in the official statement. Councilmember requested that quarterly reports on drawdowns and use of funds be added to the budget‑to‑actual reporting; the request was made part of the motion and staff agreed to provide quarterly updates.
Council also approved establishing an interest and sinking fund for tax collections designated for debt payment and adopted a city debt policy to set ratios, constraints and measurements for future bonds and certificates. The measures passed unanimously and were recorded as ordinances 5671 (fund creation), 5672 (interest and sinking fund) and a separate adoption of the debt policy.
Nut graf: The actions formalize the accounting and governance framework for the newly issued Series 2025 certificates of obligation and increase transparency by adding quarterly reporting of drawdowns and expenditures tied to the bond proceeds.
Ending: Staff will implement the separate fund, maintain the interest and sinking fund and provide the quarterly drawdown and usage reports requested by council.
