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Charter committee approves GAAP-aligned fund accounting cleanup and gives staff flexibility on bond sales
Summary
The committee recommended charter edits to modernize fund accounting, clarify utility-to-general fund transfers and allow negotiated or competitive bond sales (not only public sales) so the city can pursue best financing terms.
The Glendale Charter Review Committee on July 2 approved a package of charter cleanups and technical changes proposed by staff to modernize the city’s fund accounting and give the city flexibility in how it sells bonds.
Staff told the committee the proposed edits align charter fund definitions with generally accepted accounting principles (GAAP), make administrative fiscal provisions consistent with current practice, and move technical details so reports show infrastructure replacement and reserve amounts more clearly. Staff emphasized the changes were intended to modernize charter language and would not change the substance of an existing provision that requires up to a 25% transfer from the municipal utilities to the general fund; that transfer remains unchanged in effect.
The package also proposes removing a requirement that bonds be sold only at a public sale and allowing staff, recommended by the city’s financial advisor and bond counsel, to use negotiated or competitive processes as appropriate to market conditions. Finance Director Jack Lang explained that the choice between competitive sale and negotiated sale depends on market sentiment, investor appetite and the bond’s structure; staff would present analysis and a recommendation to the City Council before issuing bonds.
Committee members said flexibility on issuance method could produce better terms in some market conditions. One member noted that staff would bring a recommendation from the city’s financial advisor and that council approval would be required before issuance. The motion to recommend the entire package to the City Council passed on a roll-call vote.
What’s next: staff will incorporate the committee’s approval into the draft charter edits and include the accounting and bond-sale provisions in the consolidated packet the committee will forward to City Council for consideration.
Ending: The committee approved the package unanimously and asked staff to prepare the consolidated charter amendment materials for future council review.
