2023 12 19 City Council Meeting Packet

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CITY OF ATHENS, TENNESSEE 
DEBT MANAGEMENT POLICY 
  
I. INTRODUCTORY STATEMENT  
  
In managing its Debt (defined herein as tax -exempt/taxable bonds, capital outlay notes, other 
notes, capital leases, interfund loans or notes and loan agreements); it is the City's policy to:  
  
 Achieve the lowest cost of capital within acceptable risk parameters  
 
 Maintain or improve credit ratings  
 
 Assure reasonable cost access to the capital markets  
 
 Preserve financial and management flexibility  
 
 Manage interest rate risk exposure within acceptable risk parameters  
 
II. GOALS AND OBJECTIVES  
  
Debt policies and procedures are tools that ensure that financial resources are adequate to 
meet the City's long -term capital planning objectives. In addition, the Debt Management Policy 
(the "Debt Policy") helps to ensure that financings undertaken by the City have certain clear, 
objective standards which allow the City to protect its financial resources in order to meet its 
long-term capital needs.   
  
The Debt Policy formally establishes parameters for issuing debt and managing a debt portfolio 
which considers the City's specific capital improvement needs; ability to repay financial 
obligations; and, existing legal, economic, and financial market conditions. Specifically, the 
policies outlined in this document are intended to assist in the following:  
  
 To guide the City in policy and debt issuance decisions  
 
 To maintain appropriate capital assets for present and future needs  
 
 To promote sound financial management  
 
 To protect the City's credit rating  
 
 To ensure the City's debt is issued legally under applicable state and federal laws  
  
 To promote cooperation and coordination with other parties in the financing   
 
 To evaluate debt issuance options  
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