From
Tannie Camarata, Cash & Debt Manager
Title
Ordinance authorizing the issuance of Water Wastewater System Revenue Bonds, New Series 2012
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
The City was invited to apply for $582,000 in financial assistance by the Texas Water Development Board for the rehabilitation of certain sanitary sewer lines. This financial assistance will be in the form of a $495,000 low interest loan (95 basis point less than the cost of interest charged to the TWDB) as well as a 15% ($87,000) loan forgiveness ("green") of the loan principle.
At the March 6, 2012 City Council meeting the City Council approved a resolution asking for the financial assistance as required by the TWDB. The TWDB approved the loan application at their meeting on July 19, 2012.
Financial Consideration
The pricing of the bonds will take place the week of October 8. The City's Financial Advisor (First Southwest Company) and Bond Counsel (Fulbright and Jaworski) will be available for questions at the briefing meeting. Fulbright will be bringing the final completed ordinance to the meeting.
In addition, the City Council will be asked to approve the loan forgiveness agreement under a separate resolution.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AUTHORIZING THE ISSUANCE OF "CITY OF GRAND PRAIRIE, TEXAS, WATER AND WASTEWATER SYSTEM REVENUE BONDS, NEW SERIES 2012"; PLEDGING THE NET REVENUES OF THE CITY'S COMBINED WATER AND WASTEWATER SYSTEM TO THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS; RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID BONDS, INCLUDING THE APPROVAL AND EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND AN ESCROW DEPOSIT AGREEMENT, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, pursuant to an application filed with the Texas Water Development Board (the “Board”), the City of Grand Prairie, Texas (the “City”) has re...
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