PDF Ebook Debt Management Handbook
Debt management is an important part of municipal financial management. It involves planning, budgeting, accounting and public relations. Proper debt management can mean the difference be tween control ling debt and being controlled by it.
Debt management is important to the overall financial administration of a municipality. If a municipality incurs debt, it should do so only with proper planning and awareness of the impact the debt will have on its overall finances. Debt commits future revenues to its repayment, requiring elected officials to make provisions for it far into the future. Without proper perspective and preparation, the municipality’s debt, as any household budget, could get out of hand and create financial difficulties. It is also possible to back unconsciously into a difficult financial position by accumulating year-end deficits, much like a household that overextends its use of credit. Proper management of debt helps to avoid these problems.
Debt management consists of the policy planning and procedures that are to be followed in incurring debt and in planning for the funding to meet debt service requirements. It should be keyed into the municipality’s capital budget process, as well as with the annual operating budget preparation.
Contents
I. Role of Management
- Debt Management Why Do I Need It?
What is Debt Management?
II. When is Borrowing Appropriate?
- Aspects to Consider
I’ve Decided to Borrow What Next?
III. Le gal Frame work Governing Debt
- Pennsylvania Constitutional Pro visions
Local Government Unit Debt Act
Municipality Authorities Act
Federal Tax Law
Pennsylvania Tax Law
Securities Laws
IV. Types of Borrowing
- Electoral and None Electoral and Lease Rental Debt
General Obligation and Revenue Debt
Bond Anticipation Notes
Small Borrowing for Capital Purposes
Funding Unfunded Debt
Tax Exempt Municipal Leasing
Lease Rental Debt and Guaranteed Debt
Self- Liquidating and Subsidized Debt
Calling, Defeasing and Refunding
Tax and Revenue Anticipation Notes
V. Procedures and Techniques to Issue Debt
- The Marketplace
Credit Ratings
Credit Enhancement
Requirements for Borrowing
Filings and Calculations
Small Borrowings
Tax and Revenue Anticipation Notes
Professional Advisors
Selecting a Professional Advisor
Method of Selling Bonds
Full Disclosure and Investor Needs
Advertising and Publications
VI. Man aging Out standing Debt
- Keeping Lenders In formed
Debt Service Funds
Additional In formation
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PDF Ebook Debt Management Handbook
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