Page 329 - CityofSouthlakeFY25AdoptedBudget

- The City is committed to providing continuing disclosure of certain financial and operating data and ma-
terial event notices as required by Securities and Exchange Commission (SEC) Rule 15c2-12. The Finance
Department shall be responsible for the preparation of all disclosure documents and releases required
under Rule 15c2-12.

- The City will obtain a rating from at least two nationally-recognized bond-rating agencies on all issues
being sold on the public market. Required information will be presented to the rating agencies at least
annually in order to maintain ratings on outstanding debt.
- The City shall comply with the Internal Revenue Code Section 148-Arbitrage Regulations for all tax-ex- Appendix
empt debt issued. An annual estimate of arbitrage liabilities shall be obtained by the City and recorded
on the financial statements.

- A good faith deposit of 2.0% of the par amount of the bond sale shall be presented by the underwriter
in the form of a check or surety acceptable to the City and Bond Counsel prior to the approval of the
bonds by the Mayor and City Council.

- The City shall use a competitive bidding process in the sale of the debt unless the use of a negotiated
process is warranted due to market timing requirements (refunding), or a unique pledge or debt struc-
ture. The City will award competitively-issued debt on a true interest cost (TIC) basis.

- The City welcomes ideas and proposals from investment bankers and will seek to give first consider-
ation to those firms that submit unique and innovative ideas that benefit the City. Unsolicited proposals
should be submitted to the City’s Finance Department.

- The selection of an underwriter or group of underwriters for a negotiated sale shall be based on the
following factors:

- Participation in the City’s competitive sales;

- Submission of unique or creative proposals;

- Qualifications of firm; and,

- Size and geographic distribution of their sales staff.

- All professional service providers selected in connection with the City’s debt issuance and management
program shall be chosen through a competitive process such as request for proposals (RFP’s) on an as
needed basis.

- An advance or current refunding of outstanding debt shall only be considered when present value sav-
ings of at least 4.25% of the principal amount of the refunded bonds are produced, unless a debt re-
structuring or bond covenant revisions are necessary. Savings from refunding will be distributed evenly
over the life of the refunded bonds.

- An analysis of the risks and potential rewards of a derivative product for debt management must be
prepared before the structure is selected. The City’s Bond Counsel must opine that the City is autho-
rized to enter into the necessary agreements under all existing statutes.
- The use of reimbursement resolutions shall be encouraged as a cash management tool for debt funded
projects. Reimbursement resolutions may be used for any project that has been approved in the City’s
Capital Budget. Reimbursement resolutions may be used for other projects if the projects are revenue
supported or funded within the departments’ operating budget.

FY 2025 City of Southlake | Budget Book 329