Resolution 2015-92 - Laserfiche WebLink

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Call provisions for bond issues shall be made as short as possible, consistent with the lowest interest cost to the City. Unless specific compelling reasons exist, all bonds shall be callable only at par. Credit enhancements may be used if the costs of such enhancements are lower than the reduction in net debt service payments or if they provide other significant financial benefits to the City. 3.4 Bond Counsel. The City will retain an external bond counsel through a competitive process administered by the Finance Department and the City Attorney's Office. All debt issues of the City will include a written opinion by bond counsel on the validity of the bond offering, the security for the offering, and whether and to what extent interest on the bonds is exempt from income and other taxation. 3 5 Financial Advisor. The City will retain an external financial advisor through a competitive process administered by the Finance Department. For each debt issuance, the financial advisor will provide the City with information and recommendations on all aspects of the issuance, including market opportunities, method of sale, structure, term, pricing, and fees. 3 6 Method of Sale. As a matter of general policy, the City shall seek to issue its general and revenue bond obligations with a competitive sale process unless it is determined by the City's Financial Advisor and Finance Director that such a method will not produce the best results for the City. Other methods of sale that may be authorized by the Financial Advisor and Finance Director are a negotiated sales process and a private placement process. Conditions that may favor a negotiated sale process are: • The bond issue is, or contains, a refinancing that is dependent on market timing; • At the time of the issuance, the interest rate environment or economic factors that affect the bond issue are volatile; • The nature of the debt is unique and requires particular skills from the underwriter; or • The debt issuance is bound by a compressed timeline due to extenuating circumstances that prevent a competitive process from being accomplished. Whenever a negotiated sale process is determined to be in the best interests of the City, the City will use a competitive process to select its investment banking team. In such instances where the City, through competitive bidding, deems the bids as unsatisfactory, or does not receive bids, it may, at the election of the Finance Director, immediately enter into a negotiated sale process or private placement process. 3.7 Refunding of Debt. Periodic reviews of all outstanding debts will be undertaken by the Finance Director and Financial Advisor to determine refunding opportunities. Refundings will be considered (within legal constraints) if and when there is a net economic benefit of the refunding, or if the refunding is essential in order to amend covenants to enhance operations and management. As a general rule, refundings will only be considered if the present value savings (net of all costs) of a particular refunding will exceed five percent (5 %) of the refunded principal.