Comptroller Extends Comment Period on Proposed Policy for Local Government Debt Management

Comptroller Justin P. Wilson has extended the deadline for providing public input on a model debt management policy for local governments until Jan. 8, 2010. Wilson initially set mid-December as a tentative deadline for collecting comments, but decided to extend the timetable a few more weeks to give people more time to respond.

After collecting more input from citizens, Wilson plans to submit a proposed model debt policy to the State Funding Board for consideration. If the Funding Board adopts the model debt policy, local governments throughout Tennessee may be required to develop and adopt debt policies of their own that are consistent with the model.

Wilson expects the model debt policy to make it easier for citizens and members of local governing bodies to get details about debt transactions, including the relationships between the parties involved in the transactions.

Wilson also expects the model debt policy to have provisions prohibiting an individual or company from representing more than one party in a local government bond transaction. For example, a local government’s financial advisor would be banned from also serving as the local government’s bond underwriter or bidding on the debt.

And Wilson expects all fees, relationships and contracts between companies, their employees and independent contractors to be disclosed under the new policy.

The full notice from the Comptroller can be viewed here. The notice includes a link to the proposed debt management policy.