169181 ORDINANCE NO. 16,918
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3 AN ORDINANCE AMENDING CITY CODE SECTION 2 -172 (B)
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5 REGARDING THE CITY'S POLICY FORTHE SALE OF BONDS;
6 AND FOR OTHER PURPOSES.
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8 WHEREAS, the Board of Directors adopted a general policy regarding the
9 preferred method for the sale of bonds in 1987, and conditions in the financial markets
10 have changed significantly since that time; and
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12 WHEREAS, public concerns have been raised in Congress and elsewhere about
13 the integrity of the municipal bond marketplace and issuance procedures, and the City
14 addresses those concerns with its bond issuance policies; and
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16 WHEREAS, the Government Finance Officers Association of the United States
17 and Canada (GFOA) has studied extensively the various issues involved in determining
18 the appropriate method for the sale of municipal bonds, and adopted a recommended
19 practice statement regarding the method of sale of bonds in 1994 to provide guidance
20 to bond issuers, and City staff recommend conforming the City's policy to the statement
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of the GFOA.
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23 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
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25 THE CITY OF LITTLE ROCK, ARKANSAS:
26 SECTION 1. That City Code Section 2 -172 (b) is hereby amended to read as
27 follows:
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It is in the interest of the city, its taxpayers and its ratepayers that city
29 bonds be sold in a manner that ensures that the best sale results, taking
30 into account both long -term and short -term implications, are achieved and
31 that avoids concerns or allegations regarding the selection and
32 compensation of financial professionals. There are a number of
conditions that determine the most responsible, efficient and cost - effective
33 method of selling city bonds. When conditions exist that generally favor
34 competitive sale of bonds, the competitive method should be chosen.
35 When conditions do not favor a competitive sale, the negotiated method
of sale may be appropriate. When the negotiated method of sale is used,
36 the following procedures shall be followed:
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(a) An analysis of the conditions preventing a competitive sale will be
submitted to the city's finance director, who shall present a report
to the board of directors before any action is taken to market the
bonds.
(b) The selection of all professionals involved with the bond issue shall
be made in accordance with the provisions of Code Section 2 -244.
(c) All such other steps as are deemed necessary by the city finance
director shall be taken to ensure that the bond sale process is fair,
equitable and defensible, and all such records of the selection
process as are required to thoroughly document the rationale for
each selection will be maintained in public files.
SECTION 2. That all other provisions of Code Section 2 -172 shall remain in full
force and effect.
PASSED: June 20, 1995
ATTEST:
APPROVED:
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APPROVED AS TO FORM:
CITY ATTORNEY