Title
Proposed Amendment to Debt Management Policy
Body
Agenda of: November 21, 2024
Item No.: 2024-356
Amount: NA
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: November 21, 2024
RE: Proposed Amendment to Debt Management Policy
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer & Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Proposed Amendments to the Debt Management Policy with an immediate effective date and authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Authority's Debt Management Policy was adopted by the GLWA Board on December 9, 2015 and amended on April 26, 2023. The goal of the policy is to ensure that financings undertaken by GLWA satisfy clear objective standards which allow it to protect its financial resources, meet its long-term capital needs, and comply with the provisions of the Master Bond Ordinance. The policy provides guidance on the types and structures of debt instruments and the methods of sales to be considered. In addition to addressing the sale of debt, the policy demonstrates the Authority's goal to provide debt management activities such as timely continuing disclosure filings and rating agency communications that will help the Authority maintain and improve its credit ratings to reduce the future cost of capital. The policy also describes the selection process of underwriters and management of the syndicate.
JUSTIFICATION
Consistent with prior Board communications, the GLWA intends to conduct a Request for Proposal (RFP) process for bond underwriting services in the coming months. The Public Finance team identified and drafted proposed amendments to the Debt Management Policy to assist in managing the expectations ...
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