PART II-ONGOING DEBT ADMINISTRATION
16.0 RATINGS The city's goal is to achieve and maintain the highest possible bond ratings that result from managing the City to best meet the needs and goals of the citizens. To that end, prudent financial management policies will be adhered to in all areas. Full disclosure of operations will be made to the bond rating agencies. The city staff, with the assistance of the financial advisors and bond counsel, will prepare the necessary materials for presentation to the rating agencies. The City will strive to maintain good relationships and lines of communication with bond rating agencies as well as disclose financial reports and information to these agencies and to the public. The City will obtain a rating from at least one nationally recognized bond-rating agency on all issues being sold on the public market. Timely disclosure of annual financial information, including other relevant information will be provided to the rating agencies. The Comprehensive Annual Financial Report (CAFR) will be prepared by management and attested to by an external audit firm. The rating agencies will also be notified in advance when the city begins preparation for a debt issuance, and the Managing Director of Finance will be responsible for coordination and interaction during the bond rating process and periodic rating reviews. Timely disclosure of any pertinent financial information that could potentially affect the City’s credit rating will also be presented to the ratings agencies, required information repositories, bond insurance companies insuring City of DeSoto debt, and commercial banks providing liquidity support. The Finance Office will be responsible for ongoing interaction and involvement with the rating agencies. SECONDARYMARKET DISCLOSURE The goal of the Financial Services Department is to be transparent and meet all regulatory, legal and contractual disclosure requirements. SEC 15c2-12 regulations require municipal debt issuers to provide specified financial and operating information for fiscal years beginning on January 1, 1996, or later. The annual update of financial information and timely notice of certain specified events is to be sent to the Municipal Securities Rulemaking Board (MSRB). Additionally, issuers must notify the State Information Depositories (SIDs) if one exists. Municipal debt issuers will be obligated to provide ongoing disclosure on the status of the following material events: a. Principal and interest payment delinquencies 17.0
b. Nonpayment-related defaults c. Unscheduled draws on reserves d. Unscheduled draws on credit enhancements e. Substitution of credit or liquidity providers, or the failure to perform f. Adverse tax opinions or events affecting the tax-exempt status of the security g. Modifications to rights of security holders h. Bond calls i. Defeasances j. Matters affecting collateral k. Rating changes
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