From
Brady Olsen, Treasury and Debt Manager
Title
Discussion and consideration of all matters incident and related to approving and authorizing publication of notice of intention to issue Taxable Series 2019B Certificates of Obligation, including the adoption of a resolution pertaining thereto
Presenter
Becky Brooks, Chief Financial Officer
Recommended Action
Approve
Analysis
Staff currently plans to issue debt in accordance with ongoing discussions concerning development in the City. Combination Tax and Revenue Certificates of Obligation (CO's) totaling approximately $53,000,000 will be issued on August 6, 2019.
The purpose and use of the funds include acquisition of land, parking facilities, park amenities, as well a street, water, and sewer infrastructure to support these projects. We believe this debt could be self supporting within three years, with ongoing project revenues funding the debt service on the bonds.
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.
The City's bond counsel, Norton Rose Fulbright, prepared the resolution which authorizes the City to issue an amount not to exceed $58,000,000 for City purposes. The resolution amount is greater than the bond sale amount in case market changes increase the size of the sale due to issuing bonds at a discount.
Financial Consideration
Funds to pay the debt service on these CO's will be available and appropriated in the General Obligation Debt Service Fund.
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, TAXABLE SERIES 2019B.
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) 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, (ii) improving and extending the City’s water and wastewater system and the acquisition of land and rights-of-way therefor (iii) acquiring, constructing and equipping park and recreation facilities and the acquisition of land therefor and related infrastructure, (iv) constructing and improving parking facilities 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:
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 FIFTY-EIGHT MILLION DOLLARS ($58,000,000) for the purpose of paying contractual obligations to be incurred for (i) 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, (ii) improving and extending the City’s water and wastewater system and the acquisition of land and rights-of-way therefor (iii) acquiring, constructing and equipping park and recreation facilities and the acquisition of land therefor and related infrastructure, (iv) constructing and improving parking facilities 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 18th DAY OF JUNE, 2019.