title
Presentation, discussion, and possible action on Resolution No. 26-014 regarding the annual approval of the Department’s Interest Rate Risk Management Policy
end
RECOMMENDED ACTION
Adopt attached resolution.
BACKGROUND
The Department adopted an Interest Rate Risk Management Policy (formerly the Swap Policy) on September 9, 2004, to establish guidelines for the use and administration of interest rate management agreements, including but not limited to, interest rate swaps, caps, collars, and floors acquired in connection with the issuance of debt obligations. The Swap Policy is reviewed and approved annually.
The policy underwent substantial changes in 2025 to clarify the Department’s ability to manage interest rate risk related to assets (mortgage loans and pipeline risk), in addition to liabilities (issuance of debt obligations).
The proposed Interest Rate Risk Management Policy, blacklined against the prior policy, proposes no significant changes and includes only minor comments (dates and clean-up) and compliance with state law; a copy is attached for your reference.
Staff, in conjunction with the Department’s Swap Advisor and Bond Counsel, has reviewed the proposed Interest Rate Risk Management Policy and recommends approval and adoption of Resolution 26-xxx014.