Page 441 - FortWorthFY23AdoptedBudget

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 within ten years and without any call premium.

F. Sale Process

The City shall use a competitive bidding process in the sale of debt unless
the nature of the issue or market conditions warrant 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
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. Underwriting Syndicates

When a negotiated sale is deemed in the best interest of the City,
underwriters shall be selected from a procurement process designed to
yield the most qualified and experienced firms for the transaction,
performed in line with the City’s administrative regulations (procurement
of goods and services). City staff will recommend the structure of
underwriting syndicates, which will be effective for the type and amount
of debt being issued. The City will consider its M/WBE goals in structuring
syndicates.

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