Page 408 - FortWorthFY22AdoptedBudget

D. Debt Structure

Generally, the City shall issue bonds with an average life of approximately
ten and one-half (10.5) years for general obligation bonds and
approximately seventeen to eighteen (17-18) years for revenue bonds. The
structure should approximate level principal on general obligation bonds
and level debt service for revenue bonds. With respect to the issuance of
revenue bonds for a stand-alone or self-supporting project, the term of the
debt and debt service structure shall be consistent with the useful life of
the project and the revenue-generating capability of the project.

There shall be no debt structures, which include increasing debt service
levels in subsequent years, with the exception of the first and second year
of a payment schedule. There shall be no "balloon" bond repayment
schedules, which consist of low annual payments and one large payment
of the balance due at the end of the term. There shall always be at least
interest paid in the first fiscal year after a bond sale and principal starting
generally no later than the second fiscal year after the bond issue. In the
case of a revenue generating project, principal repayment should begin no
later than the first full year after the project has been placed in service.
Normally, there shall be no capitalized interest included in the debt
structure unless there are no historical reserves upon which to draw.

E. Call Provisions

Call provisions for bond issues shall be made as short as possible consistent
with the lowest interest cost to the City. When possible, all bonds shall be
callable only at par.

F. Sale Process

The City shall use a competitive bidding process in the sale of debt unless
the nature of the issue warrants a negotiated sale. The City shall attempt
to award the bonds based on a true interest cost (TIC) basis. However,
the City may award bonds based on a net interest cost (NIC) basis when
the NIC basis can satisfactorily determine the lowest and best bid.

G. Timing of Sales

The City may use the cash received through the issuance of notes pursuant
to, or the appropriation authority that may be available in accordance with
the commercial paper programs, to begin capital projects approved under
those programs. The City may also use reimbursement resolutions and its

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