What Are Annual Debt Transparency Reports?
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In addition to annual continuing disclosure requirements for California school district financings, districts are now also required to file an annual debt transparency report (“ADTR”) with the California Debt Investment Advisory Commission (“CDIAC”) for financings issued after January 21, 2017.
Under Government Code Section 8855, CDIAC was created to provide California public agencies with resources for debt issuances and to provide an accessible database of California debt issuances for the public. Districts issuing debt are required to submit a report for a proposed issuance no later than 30 days prior to the sale of any debt issuance and submit a report of final sale no later than 21 days after the sale of any debt issuance. These reports include information such as par amount and various costs of issuance and can be found on CDIAC’s website.
On September 12, 2016, Senate Bill 1029 was approved and became effective on January 1, 2017. The intent of Senate Bill 1029 was to further increase transparency of debt issued in California. In addition to a district’s previous requirement to file sale reports with CDIAC, districts are now required to submit an ADTR. Districts are also required to have a debt policy in place prior to the issuance of new debt. This applies to all California school financings such as, but not limited to, general obligation bonds, certificates of participation, and tax and revenue anticipation notes.
ADTRs include information such as:
- Debt authorized, including amounts issued, lapsed, and not yet issued
- Debt outstanding, including amounts matured and remaining
- Debt issued, including proceeds spent and remaining, and purposes for which the proceeds were spent
Individual reports are required for each financing with a report of sale made to CDIAC after January 21, 2017. Financings issued between July 1 and June 30 have a filing deadline of January 31 of the following year and requires an ADTR to be filed annually as long as the financing remains outstanding.
Keygent provides CDIAC filing services to school and community college districts in California. For more information, please contact us.