From
Cheryl Davenport
Title
Resolution of the City of Grand Prairie, Texas approving and authorizing publication of Notice of Intention to issue Combination Tax and Revenue Certificates of Obligation
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
Staff is currently working on plans to issue debt in accordance with the approved Capital Improvement Program (CIP) for Fiscal Year (FY) 2016-2017. Combination Tax and Revenue Certificates of Obligation (CO's) totaling approximately $37,100,000 will be issued on November 1, 2016. The time line for the bond sale is attached.
State law requires that in order to issue CO's, a notice of intent must be published once a week for two consecutive weeks in a newspaper having general circulation in the City. The first notice of intent must be published at least 31 days prior to the sale date. In this case, the notices will be published in the Fort Worth Star Telegram on September 25th and October 2nd. The CO's will be issued for the following purposes:
Fire $2,340,000
Library $1,940,000
Facilities $12,470,000
Police $400,000
Streets $19,950,000
Total $37,100,000
The City's bond counsel, Norton Rose Fulbright, prepared the resolution which authorizes the City to issue an amount not to exceed $38,000,000 for City purposes. The resolution amount is greater than the bond sale amount in case the market pressures increase the size of the sale due to issuing bonds at a premium.
Financial Consideration
The City Council was provided with information on the capital projects within the capital improvement program, along with the proposed operating budget. Funds to pay the debt service on these CO's will be available and appropriated in the General Obligation Debt Service Fund. The Finance and Government Committee reviewed the proposed bond sale at their meeting on September 6th and recommends moving forward with the proposed bond sale.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, APPROVING AND AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION
Whereas, the City Council of the City of Grand Prairie, Texas (the “City”), has determined that certificates of obligation should be issued under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended, for the purpose of paying contractual obligations to be incurred for (i) acquiring, constructing, improving and equipping public safety facilities and library facilities, (ii) acquiring vehicles for the public safety department (iii) constructing, improving and equipping existing municipal facilities, (iv) constructing street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, pedestrian pathways, signage, traffic signalization and street noise abatement incidental thereto and the acquisition of land and rights-of-way therefor and (v) professional services rendered in connection therewith; and
Whereas, prior to the issuance of such certificates, the City Council is required to publish notice of its intention to issue the same in a newspaper of general circulation in the City, said notice stating (i) the time and place the City Council tentatively proposes to pass the ordinance authorizing the issuance of the certificates, (ii) the maximum amount proposed to be issued, (iii) the purposes for which the certificates are to be issued and (iv) the manner in which the City Council proposes to pay the certificates;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. That the City Secretary is hereby authorized and directed to cause notice to be published of the City Council’s intention to issue certificates of obligation, in one or more series, in the principal amount not to exceed THIRTY-EIGHT MILLION DOLLARS ($38,000,000) for the purpose of paying contractual obligations to be incurred for (i) acquiring, constructing, improving and equipping public safety facilities and library facilities, (ii) acquiring vehicles for the public safety department (iii) constructing, improving and equipping existing municipal facilities, (iv) constructing street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, pedestrian pathways, signage, traffic signalization and street noise abatement incidental thereto and the acquisition of land and rights-of-way therefor and (v) professional services rendered in connection therewith; such certificates to be payable from ad valorem taxes and a limited pledge of the net revenues of the City’s Water and Wastewater System. The notice hereby approved and authorized to be published shall read substantially in the form and content of Exhibit A hereto attached and incorporated herein by reference as a part of this resolution for all purposes.
Section 2. That the City Secretary shall cause the notice described above to be published in a newspaper of general circulation in the City, once a week for two consecutive weeks, the date of the first publication to be at least thirty-one (31) days prior to the date stated therein for the passage of the ordinance authorizing the issuance of the certificates of obligation.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 20TH DAY OF SEPTEMBER, 2016.