15249M M
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ORDINANCE NO. 15,249
AN ORDINANCE- ESTABLISHING.FORMAL POLICIES
AND PROCEDURES TO BE FOLLOWED WHEN THE
CITY APPROVES UTILITY RATES AND BOND
ISSUES.
WHEREAS, the City governing body is solely responsible for
setting utility rates; and
WHEREAS, the governing body is, with a few exceptions such
as Ambulance Authority and Housing Facilities Board, responsible for
approving new City bond issues and refinancing, restructuring,
or defeasing current issues; and
WHEREAS, the manner in which any type bond is issued in
the name of the City affects the image of Little Rock's financial
management, its bond ratings, and ultimately the price the City
pays to borrow; and
WHEREAS, the Board of Directors wishes.to establish formal
policies and procedures to ensure uniform treatment of all city
agencies in connection with requests for approval of utility rate
increases and bond issues.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. APPROVAL OF UTILITY RATE INCREASES
Any city agency requesting approval of a municipal utility
rate increase will:
A. Make a request in writing to the City Manager not less
less than 60 days prior to the date formal approval is
expected by the City Board of Directors.
B. Provide with request one complete set of financial
data and any and all other information required
presented in an organized manner to justify the
proposed rate increase.
C. Provide a statement from a CPA firm (which may be the
agency's independent auditor) which verifies
correctness of financial data.
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1 D. Assure the City Manager the proposed rate increase has
2 been reviewed and approved by the agency's legal staff
3 or counsel as to form and procedure.
4 SECTION 2. APPROVAL OF BOND ISSUES
5 Each city agency requesting approval of a new bond issue
6 or restructuring an existing issue will:
7 A. Make a request in writing to the City Manager not less
8 than 60 days prior to the date formal approval of the
9 bond issue or restructuring is expected by the Board of
10 Directors. The request will show the need for the bond
11 issue; the amount required; and the date funds are
12 needed.
13 B. Provide with the request one complete set of financial
14 data and any and all other information reqluired
15 presented in an organized manner for evaluation of the
16 bond issue request.
17 C. Provide a statement from a CPA firm (which may be the
18 agency's independent auditor) which verifies correctness
19 of financial data.
20 D. Assure the City Manager the proposal has been reviewed
21 and approved by the agency's legal staff or counsel
22 as to form and procedure.
SECTION 3. SELECTION OF PROFESSIONAL SERVICES FOR RATE
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INCREASES AND BOND ISSUES.
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A. The selection by an agency of bond counsel, independent
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financial advisor, or any other professional service
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will be made in accordance with the provisions of City
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Ordinance 15,221. The Assistant City Manager for
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Administration will be a member of the review committee
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established by Ordinance 15,221 for selection of bond
30 issue related professional services, and will inform
31 the City Manager of all proposed selections before
32 contracts are executed for such services.
33 SECTION 4. FaRMULATION OF BOND ISSUES AND SALE OF BONDS.
34 A. Any agency requesting approval of a bond issue may make
35 recommendations on formulation of the issue including
36 such items as the length of maturities, amortization
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schedules, revenue pledges, early redemption provisions,
discounts, good faith checks, provisions for advertising
and marketing the bonds, etc. However, all of these
will be reviewed in advance by the City's Finance
Director for the purpose of formulating a recommendation
to the Board of Directors.
SECTION 5. SALE OF BONDS
A.It will be a general policy of the City to sell bonds
by competitive bidding. Exceptions to this policy may
be made when the City finds unusual circumstances
surrounding a proposed issue. In that event, a report
is to be made to the Board of Directors before action
is taken to market the bonds. Anticipated fluctuations
in market conditions are not considered unusual
circumstances.
ADOPTED: February 17, 1987
ATTEST: APPROVED:
CITY LERK Jn- ZECEI MAYOR LOTmIE SHACKELFO
D.AS TO FORM:
STODOLA, CITY ATTORNEY
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