11.3 Private Placement The City will seek to place its bonds with a select group of investors when the issuance warrants the sophistication of the buyer. The City will ensure that the placement fee is less than a typical underwriter’s fee in a negotiated offering of a comparable type sale in a similar sale environment. 12.0 PERMITTED INVESTMENTS All investments of bond proceeds shall adhere to the City’s Investment Policy, approved periodically by the City Council. Investments shall not allow security types or credit standards less than those of the City’s Investment Policy and the term of the investments must not be in excess of the term of the bonds. 13.0 REFUNDING OF DEBT The City of DeSoto, Texas shall monitor the municipal bond market for opportunities to refund outstanding debt to save the City from future interest costs. As a general rule, the savings shall be at least 3% of the present value of the par amount of debt refunded and be inclusive of issuance costs and any cash contributions. However, market conditions, the amount nature of the debt being refunded and any unique or special circumstances will be taken into consideration and if justified, the City shall consider refunding that is less than 3% present value savings. Arbitrage rules are to be considered when refunding debt. 14.0 DEBT SERVICE TAX RATE Council shall adopt the necessary debt service tax rate in order to meet debt service principal, interest and fee payments, net of transfers, for each particular fiscal/budget year, subject to any reserve availability. 15.0 PROFESSIONAL ASSISTANCE 15.1 Bond Counsel Bond Counsel will have comprehensive municipal debt knowledge and experience. When the bond counsel has been selected, they are responsible for providing an opinion to investors in two specific areas. The Bond Counsel will issue an opinion as to the legality and tax exempt status of any City obligations. The bond counsel also prepares all bond documents necessary to execute the bond issuance such as, preparation of the ordinance authorizing issuance of obligations and all of the closing documents to complete the sale, and will perform other services as defined by contract approved by the City Council. The bond counsel is responsible for coordinating with the City Attorney’s office, City Secretary’s office and the Finance Department, as well as the City’s Financial Advisor, to ensure that all tasks associated with the bond issuance are completed within the prescribed timeframes. To the extent required by State law, bond counsel is responsible for coordinating with the Office of the Attorney General and the Office of the Comptroller of Public Accounts of the State of Texas matters relating to the approval of City obligations. The City values continuity in maintaining a relationship with bond counsel due to the complexity of issues and laws related in issuing municipal bonds. However, the City reserves the right to conduct a formal request for proposal or request for qualifications process. The city will also seek the advice of Bond Counsel on all other types of financings and on any other questions involving federal tax or arbitrage law.
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