Tallahassee city officials have found that providing secondary market disclosure through their annual report to bondholders makes sense and serves their own best interests.
As an example, in the summer of 1991 when the city produced an Annual Report to Bondholders, staff were in the process of evaluating new electric energy supply options that, if approved, would have resulted in the issuance of $300 million in additional parity electric revenue bonds.
Tallahassee's Annual Report to Bondholders was produced to attempt to fill this time gap between new issues of parity debt.
Prospectively, Tallahassee will include in all official statements a statement regarding the availability of its CAFR and budgets and its intent to produce an Annual Report to Bondholders.
A side benefit is that the Annual Report to Bondholders has reduced the preparation time required to produce official statements.
While the 1991 Annual Report to Bondholders was an honest and forthright attempt to fill the information needs of the municipal bond market regarding City of Tallahassee bonds, there is still much room for improvement.