DeSoto FY21----FY22-Approved-Budget

11.2. Negotiated Sale The City shall seek to weigh the selection of underwriter before negotiating a bond sale. The selection of the underwriter shall encourage the best economic environment in which the City will benefit from sale of its bonds. Typically, negotiated sales will occur when the market volatility is unpredictable. In some cases, this may mean investors are not willing to commit capital in uncertain economic environments or the size of the issue may not attract the bids for a successful sale. Moreover, the primary purpose of the negotiated sale is to solicit the interest rate environment for the City to sale bonds. 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.



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


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