Report 2011-131 Recommendation 32 Responses
Report 2011-131: City of Vernon: Although Reform Is Ongoing, Past Poor Decision Making Threatens Its Financial Stability (Release Date: June 2012)
Recommendation #32 To: Vernon, City of
To ensure that it issues debt when doing so is in the best interests of the city and is consistent with its long-term financial goals, the city should establish a comprehensive debt policy that includes the elements that the GFOA recommends and make the debt policy it establishes available on its Web site.
Annual Follow-Up Agency Response From July 2014
On February 4, 2014, the City Council adopted the Budget Policies and Procedures Manual, which incorporates best practices recommended by GFOA and contains a debt management section that provides guidelines regarding use limitations, issuance, and repayment of debt. The Budget Policies and Procedures Manual is posted on the Finance Department page of the Citys website. (See page 6 of Budget Policies and Procedures Manual.)
- Completion Date: February 2014
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Although the debt management policy is high-level, it does provide the city's overall policy for debt management.
1-Year Agency Response
By September 2013, the Finance Director will present for City Council adoption, a comprehensive debt policy that includes elements recommended by GFOA. Upon City Council adoption, the policy will be posted on the City's website.
- Estimated Completion Date: September 2013
- Response Date: July 2013
California State Auditor's Assessment of 1-Year Status: No Action Taken
6-Month Agency Response
The city indicates that by May 2013, the finance director will develop and present for city council adoption, a comprehensive debt policy that includes elements recommended by GFOA. After the city council adoption, the city will post the policy on its Web site.
- Response Date: January 2013
California State Auditor's Assessment of 6-Month Status: No Action Taken
60-Day Agency Response
The city did not address this recommendation in its August 2012 response. (See 2013-406, p. 196)
- Response Date: August 2012
California State Auditor's Assessment of 60-Day Status: No Action Taken
Agency responses received after June 2013 are posted verbatim.