715.0 Debt Management Policy

Debt Management Policy

Purpose

To establish and maintain well defined debt management guidelines for issuing new debt as well as managing outstanding debt. It will apply to all debt instruments issued by the District regardless of the purpose for which issued or the funding source for repayment. The School Board will authorize all debt financing agreements.

The primary objective is to ensure prudent debt management practices which:

1. Maintain financial stability and flexibility
2. Preserve public trust
3. Minimize cost to taxpayers
4. Maintain a prudent level of financial risk
5. Preserve access to financial markets
6. Demonstrate adequate administrative oversight of debt programs to credit rating agencies and governing authorities

The Superintendent or designee will have the authority to initiate a debt issuance process. Such debt issuance processes will be administered in a manner consistent with Minnesota State law, Department of Education regulations and District policies. Procedures implementing this policy are contained in Board Policy Guidelines 715.0G.

The School Board will be provided with a summary debt management update at budget adoption and with every bond sale. The Debt Management Regulation will be reviewed on an annual basis and updated as needed.

Rationale:

Anoka-Hennepin Public Schools will practice wise stewardship of financial resources. 

Ref:

M.S. 123B School District Power and Duties

M.S. 465.71 Installment Lease Purchase

M.S. 475 Municipal Debt