Page 409 - FortWorthFY22AdoptedBudget

own cash to initiate certain projects. Consideration should be given to any
lost interest earnings on the City’s cash compared to the anticipated interest
expense associated with the issuance of obligations by the City. This
process will improve the City’s ability to time its entry into the long-term
fixed rate market and to manage its debt issuances and debt payments in
order to minimize the impact on tax rates and utility rates.

H. Rating Agencies Presentations

Full disclosure of operations and open lines of communication shall be
made to the rating agencies. City staff shall prepare the necessary materials
and presentation to the rating agencies. Credit ratings will be sought from
one or more of the nationally recognized municipal bond rating agencies,
currently Moody's, Standard & Poor’s, Fitch, and Kroll.

I. Continuing Disclosure

The City is committed to providing continuing disclosure of financial and
pertinent credit information relevant to the City's outstanding securities
and will abide by the provisions of Securities and Exchange Commission
(SEC) Rule 15c2-12 concerning primary and secondary market
disclosure. City staff will undertake to update financial and pertinent credit
information within six months of the end of the City’s fiscal year and at
such other times as may be indicated by material changes in the City’s
financial situation.

J. Debt Refunding

City staff shall monitor the municipal bond market for opportunities to
obtain interest savings by refunding outstanding debt. As a general rule,
the present value savings of a particular refunding should exceed 3.5%
of the par amount of the refunded maturities.

K. Interest Earnings

Interest earnings received on the investment of bond proceeds shall be
used to assist in paying the interest due on bonds issued, to the extent
permitted by law.

L. Lease/Purchase Agreements

Over the lifetime of a lease, the total cost to the City will generally be
higher than purchasing the asset outright. As a result, the use of

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