Who should be informed about debt management policies in local government?

The correct answer emphasizes the importance of transparency and communication in local government operations, particularly regarding financial matters like debt management policies. Informing all relevant stakeholders ensures that those who are affected by or involved in the local government's decision-making processes are kept in the loop. This includes elected officials, who play a crucial role in policy-making; staff members involved in budget preparation and financial management; citizens, who have a vested interest in how public funds are managed; and potentially external entities that interact with the local government.

Debt management policies can significantly impact the financial stability of a municipality and, consequently, the services provided to its residents. By engaging a broad audience, local governments can foster a better understanding of their financial strategies, enhance accountability, and build trust with the community.

In contrast, informing only elected officials would lead to a narrow perspective and could create gaps in understanding among other important stakeholders. Restricting communication to external auditors would limit oversight and transparency to only a review process, rather than encompassing an ongoing dialogue with all parties involved. Focusing solely on local business owners excludes the larger community, which is essential for a holistic approach to governance. Thus, engaging all relevant stakeholders is the most comprehensive and sound approach to debt management communication in local government.