The Importance of Having a Robust Debt Policy

Governments and governmental entities can deliver capital projects important to their community by issuing debt through the capital markets.  GFOA recommends that entities have a robust debt policy that provides the framework for responsible debt issuance and management that adheres to the goals of the entity while also ensuring compliance with federal, state and local laws.

Having a debt policy sets the stage for understanding when issuing debt is appropriate, the key tenets of the debt issuance process, and ongoing management of the debt portfolio. This session will provide an overview of GFOA’s “Debt Policy” Best Practice showcasing the key components of a debt policy and the use of other debt management best practices in the development, ongoing review, and execution of a debt policy.

Learning Objectives

• Understand the basic components of a debt policy.
• Learn about other best practices related to the debt issuance process.
• Form a plan to ensure adhering to debt management best practices.