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<br />REQUEST FOR COUNCIL ACTION <br />Date: 10/27/2025 <br />Item No.: 7.a. <br />Department ApprovalCity Manager Approval <br />Item Description:Consider Adopting a Revised Debt Policy <br />1 <br />2 Background <br />3 The City’s Debt Policy was last reviewed in 2015 with no updates at that time. Best <br />4 practices state that financial policies should be periodically reviewed and updated. At the <br />5 October 14, 2025, meeting, members of the Finance Commission reviewed and approved a <br />6 revised Debt Policy. <br />7 <br />8 The updates that staff are recommending can be found in the redlined version of the policy, <br />9 which is Attachment 2. The primary change is regarding the statutory debt limit, which was <br />10 changed in 2008 from 2% to 3% of the estimated market value. The policy has been <br />11 updated to reflect this limit and also includes the State Statute reference. There are a few <br />12 other minor changes that were recommended by Ehlers and the Finance Commission. <br />13 <br />14 The Council is asked to adopt the revised Debt Policy by resolution, which is Attachment 1. <br />15 <br />16 Policy Objectives <br />17 The City’s financial policies are consistent with governmental finance best practices as well <br />18 as previously-adopted Council actions. <br />19 <br />20 Equity Impact Summary <br />21 There are no equity impacts. <br />22 <br />23 Budget Implications <br />24 Not applicable <br />25 <br />26 Staff Recommendations <br />27 Staff recommend the Council adopt the revised debt policy as submitted. <br />28 <br />29 Requested Council Action <br />30 Motion to approve the attached resolution adopting the revised debt policy. <br />31 <br />32 <br />Michelle Pietrick, Finance Director <br />Prepared by: <br />1.RCA Debt Policy - 2025 Revision Resolution <br />Attachments: <br />2.Debt Policy Revision 10-27-25 <br />Page 1 of 2 <br />Qbhf!4!pg!29: <br /> <br />