From
Brady Olsen, Treasury and Debt Manager
Title
Ordinance authorizing the issuance of CITY OF GRAND PRAIRIE, TEXAS, COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2019B providing for the payment of said certificates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a limited pledge of the net revenues of the City’s combined water and wastewater system; providing the terms and conditions of such certificates of obligation and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates of obligation, including the approval and execution of a Paying Agent/Registrar Agreement and a Purchase Agreement and the approval and distribution of a Preliminary Official Statement and an Official Statement pertaining thereto; and providing an effective date
Presenter
Brady Olsen, Treasury and Debt Manager
Recommended Action
Approve
Analysis
On June 18th, Council was presented with a plan to finance the Epic Central project as well as a parks project along I-30. Council subsequently passed a notice of intent to issue debt for the project. Since the notice, management has decided to delay $20 million for the parks project along I-30 until next year. Of the current debt, approximately $7 million will be used for parking facilities, $9 million for the pickleball and barbeque facility and $17.2 million for other associated amenities and infrastructure. We will pay the debt off over a 15 year period, although we have the option to repay any unspent bond proceeds if the project stalls. Although the debt is backed by the property tax base and water and sewer revenues, we anticipate paying the majority of the debt via project revenues.
Financial Consideration
The debt obligations are being funded in a negotiated sale, due to the complex nature of the multiple issuances. Funding for the debt payment is included in the GO Debt Service Fund during construction and then an Epic Central operating fund thereafter. The City's Bond Counsel, Norton Rose Fulbright, will bring the final bond ordinance to the City Council meeting the day of the sale, August 6th, 2019.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS,