SUBJECT:
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Approval of a resolution authorizing updates to the Debt Management Policy.
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FISCAL IMPACT:
This action has no fiscal impact.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Internal/External Customer Service Excellence ☐ 2. Stakeholder Engagement
☒ 3. Financial and Environmental Sustainability ☐ 4. Staff Development ☐ 5. Agency Growth Management
Strategic Objectives:
☐ 1.1 Safety & Risk ☒1.2 Continuous improvement ☐ 1.3 Dynamic Change
☐1.4 Culture of Innovation ☐2.1 Be an Employer of Choice ☐2.2 Organization Development
☐2.3 Organization Culture ☒3.1 Resource optimization ☐3.2 Safety Culture
☐3.3 Environmental Leadership ☐4.1 Educate & Call to Action ☐4.2 Build Partnerships
☐4.3 Value of Transit ☐4.4 Project Connect
EXPLANATION OF STRATEGIC ALIGNMENT: The policies adopted by the Board of Directors provide strategic direction to the President & CEO and CapMetro with regard to policy matters within the purview of the Board.
BUSINESS CASE: Periodic review and updates to policies adopted by the Board of Directors are prudent in order to ensure that they meet the ongoing needs of CapMetro.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval by the Finance, Audit and Administration Committee on August 15, 2022.
EXECUTIVE SUMMARY: The Debt Management Policy sets out the rules and restrictions of the issuance and use of all forms of debt financing by CapMetro. This policy serves as a management tool to enable CapMetro to a) identify transactions that utilize debt in the most efficient manner, and b) provide for full and timely repayment of all debt. This policy also establishes guidelines consistent with the general policy on debt management for the appropriate amount and type of debt as a means of achieving the lowest possible cost of capital within prudent risk parameters, ensure access to the capital markets and provide and accountability for debt management that is prudent and transparent. Staff has reviewed this policy in consultation with CapMetro’s outside investor, PFM Asset Management LLC. Staff is recommending formatting changes and minor updates to the Policy to align with current debt management practices. The proposed revisions are attached in both redlined and clean versions.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: N/A
RESPONSIBLE DEPARTMENT: Legal and Finance Departments
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RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2021-220
WHEREAS, it is prudent to periodically review and update policies adopted by the Board of Directors in order to ensure they continue to meet the needs of CapMetro; and
WHEREAS, the Board of Directors adopted revised Bylaws in 2017 that require policies adopted by the Board of Directors to be reviewed every five years; and
WHEREAS, the Debt Management Policy, Resolution No. CMTA-2012-52, has been identified for review in August 2022.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the attached proposed revisions to the Debt Management Policy are hereby adopted.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool