Receive and file the Yolo County Treasurer's Debt Report for the fiscal year ended June 30, 2023. (No general fund impact) (Haynes/Xiong)

The Department of Financial Services (DFS) updated the Policy on Borrowing, Debts, and Obligations (Att. B.) in February 2018 to include an annual reporting requirement to the Board of Supervisors. The updates to the policy at the time were completed in order to comply with additional obligations required by Senate Bill 1029 requiring various elements to be part of the debt policy and to comply with best practices published by the Government Finance Officer's Association (GFOA).

The reporting requirements in the policy include reporting on the outstanding debts by category, long-term obligations and solutions, and debt load expressed through various financial ratios. These financial ratios are closely reviewed prior to new or additional debt issuance to ensure debt levels remain within prescribed tolerances. The ratios are set in order to help promote good fiscal management and aid in obtaining strong credit ratings from Nationally Recognized Statistical Rating Organizations.

The Treasury and Revenues Division of DFS has summarized the reporting requirements in Att. A. (2023 Annual Debt Report) in accordance with the policy requirements. Overall, the report concludes the following:

The 2024-2028 Capital Improvement plan includes various projects; however, there are no plans to secure debt financing for their completion. Given the current elevated interest rate environment, which typically results in higher borrowing costs, staff will explore all available funding sources to address any potential gaps.

There was no collaboration required on the preparation of this report.

Not applicable.