Title:
Title
Revised City of Sacramento Supplemental Policy on Disclosure
End
FileID
File ID: 2019-01498
Location
Location: Citywide
Recommendation:
Recommendation
Adopt a Resolution approving the revised City of Sacramento Supplemental Policy on Disclosure.
Contact: Brian Wong, Debt Manager, (916) 808-5811, Office of the City Treasurer
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Supplemental Policy on Disclosure adopted on December 10, 2019
4-Supplemental Policy on Disclosure [Redline]
5-Exhibit A - Supplemental Policy on Disclosure
Description/Analysis
Issue Detail: The City and its related entities (e.g., the Sacramento Public Financing Authority) issue and sell municipal bonds to raise funds needed for capital projects. The City's Supplemental Policy on Disclosure (the Policy) specifies how the City will satisfy its obligation under federal securities laws-in particular, Rule 15c2-12 of the Securities and Exchange Commission-to keep the bond market apprised of important events that could affect the security of those bonds. The Policy was most recently revised on April 23, 2019, to comply with the amendment to Rule 15c2-12 that added the following new events to the list of events for which an issuer of bonds or other obligated person? must provide notice to the bond market:
* "Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material." (Italics added.)
* "Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties." (Italics added.)
After further discussion with the City Attorney's Office and Stradling Yocca Carlson & Rauth, the City's disclosure counse...
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