Bond Accountability Commission 2 Recommendations Page 44
We recommend that at least CMSD’s tax-exempt general obligation Bonds, and any CMSD direct subsidy QSCBs 44 and BABs, 45 rated at AA- or better levels be sold through competitive bids under current market conditions.46
In all negotiated Bond and Note sales, we recommend that CMSD conduct a new underwriter selection process focused on overall underwriter sales performance capabilities, taking into account experience relating to successful offerings of Bonds and Notes of the type expected to be offered. That process should obviate an emphasis on local, or Ohio, offices and on participation in past CMSD transactions. We recommend that the focus be placed on the ability of the underwriters to sell the proposed CMSD Bonds at the optimally lowest overall cost for CMSD and the taxpayers taking into account both yields and transactional costs. The following factors lead us to recommend that any underwriting team for a negotiated bond sale be identified through a new selection process— •
Emergence of QSCBs for the first time in the market during 2009 and recent changes to the QSCB subsidy program
See n. 18 and accompanying text.
Again, see “Financing Options under Federal Law” beginning at page 114 herein for a discussion of QSCBs, BABs, and other federally-subsidized forms of taxable or tax credit municipal securities.
See, however, n. 16.
Published on May 14, 2014