Delray Beach city staff propose the city follow best practices set by the Government Finance Officers Association for selling bonds and selecting bond personnel, as set forth in a memo by Delray’s finance director, Joseph Safford.
The recommendations follow the indictment of former County Commissioner Mary McCarty, which raised questions on some Delray Beach bond issue practices. Larry Brown of Brown, Garganese, Weiss & D’Agresta, P.A., was hired to conduct an independent review. Though the review said no violation of law was found while the city worked with underwriting companies that employed McCarty’s husband, Kevin, some GFOA best practices were not followed.
Safford’s memo said that, when selling municipal bonds, Delray Beach should provide written justification from its financial adviser on selling bonds either through competitive bidding or a negotiated sale, depending on market conditions, and an evaluation of the best method to get the lowest cost for taxpayers. Requests for proposals would be issued for selection of a bond underwriter, bond counsel and financial adviser. The commission agreed with Assistant City Manager Douglas Smith’s suggestion at the May 12 workshop that the staff write up a formal policy and present it at a future meeting.
— Margie Plunkett
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