Debt Management

The Finance Division effectively administers all of the City's debt obligations by investing available funds responsibly, evaluating refinancing opportunities to save the City money and lower taxes on its citizens, and providing outstanding customer service to all property owners, developers, and consultants, while ensuring that all requirements are met for all debt obligations administered by the City and its legal entities.

The Debt Management Service Center has three major functions:

  1. Debt Management. Manages the City's overall debt portfolio, maintains communications with bond rating agencies to ensure a complete and clear understanding of the creditworthiness of the City, monitors and compares certain debt ratios of the City to those of comparable issuers, monitors outstanding debt for refunding opportunities, develops and manages relationships with other municipal bond market participants, and monitors the municipal bond market to ensure the City is kept abreast of all events that may impact the City debt or its access to capital markets.
  2. Debt Issuance. The issuance of the City's debt and debt-related instruments which may include, but is not limited to, general obligation bonds, revenue bonds, bond anticipation notes, capital outlay notes, tax anticipation notes, commercial paper, leases, lease purchase agreements, lease/leaseback agreements, loan agreements, investment agreements relating to bond proceeds, and derivative products. This process includes seeking and receiving appropriate authorization, determining the appropriate structure and method of sale, ensuring the preparation of all disclosure documents, selecting professionals to assist with the issuance of the debt, monitoring the municipal bond market, and documenting and reporting debt and debt-related expenditures.
  3. Debt Administration. Ensures the full and timely payment of principal and interest on the City's outstanding debt, prepares and monitors scheduled debt payments to custodian bank and third-party payees, and administer all transactions related to compliance with federal arbitrage rules and regulations as it pertains to the investment of bond proceeds and spend down requirements, administers initial and ongoing disclosure requirements as it relates to the City debt, prepares and distributes financial reports and statistical data for use by internal and external customers, and prepares invoices relating to loan agreements with other agencies, authorities, or departments.

Debt Policy

The City of Lake Elsinore Debt Policy (PDF) was enacted in an effort to standardize the issuance and management of debt by the City and its component units. The primary objective is to establish conditions for the use of debt, to minimize the City's Debt Service requirements and cost of issuance, to retain the highest practical credit rating, to maintain full and complete financial disclosure and reporting, and to maintain financial flexibility for the City. The policy applies to all debt issued by the City and its component units. Regularly updated debt policies and procedures are an important tool to ensure the use of the City's resources to meet its commitments, to meet the needs of the citizens of Lake Elsinore, and to maintain sound financial management practices.

Investment Management

The City of Lake Elsinore's Investment Policy (PDF) is intended to provide guidelines for the prudent investment of the City's temporary inactive cash and outline the policies for maximizing the efficiency of the City's cash management system. The goal of the City's Investment Policy is to meet the short and long-term cash flow demands in a manner, which will provide for the safety of principal and sufficient liquidity while providing a suitable investment return.