Item 4CCITY OF
SOUTHLAKE
MEMORANDUM
March 28, 2017
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Resolution No. 17-018, Authorizing a Notice of Intent to issue
Certificates of Obligation
Action
Requested: Approval of Resolution No. 17-018 as initial step to issue
certificates of obligation for capital improvement projects.
Background
Information: Approval of this resolution is the first step in issuing certificates of
obligation. Once this Resolution is approved, the City may issue
less than that amount, but cannot exceed it. The approval of the
resolution does the following:
Establishes the maximum amount ($5,900,000) of the
certificates the city can issue;
Authorizes the publication of a notice in the newspaper of
the City's intent to issue certificates of obligation
The certificates are issued and approved by the adoption of an
ordinance; approval is scheduled for June 6th. The City would
receive funding early July. The proceeds from the bonds will be
used for the construction of Water and Sewer capital improvement
projects in accordance with the capital improvement plan
approved on September 20, 2016. All other projects included in
the approved FY 2017 Capital Budget will be funded with cash
with the exception of The Marq Phase 2. CEDC Sales Tax
Revenue Bonds are scheduled for City Council approval on June
6th
Financial
Considerations: The debt will be repaid through the City's utility fund. All other
projects included in the approved capital improvement plan will be
cash funded.
Strategic Link: C1 Achieve the highest standards of safety and security; F2 Invest
to provide and maintain high quality public assets.
Citizen Input/
Honorable Mayor and City Council
Page 2of2
Board Review: The Resolution is the first step in issuing certificates of obligation.
Citizen input is not a requirement of the Resolution; however, the
Public Hearing is scheduled for June 6, 2017 with the Ordinance.
Legal Review: The law firm Fulbright and Jaworski serves as the City's bond
counsel, and as such has prepared the Resolution.
Alternatives: In the absence of issuing the certificates, capital
funded on a pay-as-you-go basis. Budgets
projects would be prioritized based on the a
projected by fiscal year.
Supporting
Documents: Resolution No. 17-018
Staff
Recommendation: Approval of Resolution No.17-018
projects would be
and the timing of
mount of revenue
RESOLUTION NO. 17-018
A RESOLUTION approving and authorizing publication of notice of intention to
issue certificates of obligation.
WHEREAS, the City Council of the City of Southlake, 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 (the "Act"), for the purpose
of paying contractual obligations to be incurred for (i) the construction of public works, to wit:
(a) improvements and extensions to the City's combined Waterworks and Sewer System,
including the purchase of land, rights-of-way, and equipment therefor and (b) improvements to
the City's municipal service center and (ii) professional services rendered in relation to such
projects and the financing thereof; 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 accordance with the provisions of the Act;
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS:
SECTION 1: 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 during a meeting
scheduled to begin at 6:00 P.M. on the 6`" day of June, 2017, which certificates of obligation
shall be issued in one or more series, in a principal amount not to exceed $5,900,000 for the
purpose of paying contractual obligations to be incurred for (i) the construction of public works,
to wit: (a) improvements and extensions to the City's combined Waterworks and Sewer
System, including the purchase of land and rights-of-way therefor and (b) improvements to the
City's municipal service center and (ii) professional services rendered in relation to such
projects and the financing thereof, and shall be payable from ad valorem taxes and a limited
pledge of the net revenues of the City's combined Waterworks and Sewer 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: The City Secretary shall cause the aforesaid notice 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.
SECTION 3: It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and
subject matter of the public business to be considered at such meeting, including this
Resolution, was given, all as required by Texas Government Code, Chapter 551, as amended.
28154401.2/11703096
SECTION 4: This Resolution shall be in force and effect from and after its passage on
the date shown below.
PASSED AND ADOPTED, this April 4, 2017.
CITY OF SOUTHLAKE, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
28154401.2/11703096 2
EXHIBIT A
NOTICE OF INTENTION TO ISSUE CITY OF
SOUTHLAKE, TEXAS, CERTIFICATES OF OBLIGATION
TAKE NOTICE that the City Council of the City of Southlake, Texas, shall convene at
6:00 P.M. on June 6, 2017, at the City Hall, 1400 Main Street, Southlake, Texas, and, during
such meeting, the City Council will consider the passage of one or more ordinances authorizing
the issuance of certificates of obligation, in one or more series, in an amount not to exceed
$5,900,000 for the purpose of paying contractual obligations to be incurred for (i) the
construction of public works, to wit: (a) improvements and extensions to the City's combined
Waterworks and Sewer System, including the purchase of land and rights-of-way therefor and
(b) improvements to the City's municipal service center and (ii) professional services rendered
in relation to such projects and the financing thereof; such certificates to be payable from ad
valorem taxes and a limited pledge of the net revenues of the City's combined Waterworks and
Sewer System. The certificates are to be issued, and this notice is given, under and pursuant to
the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended.
Lori Payne
City Secretary
City of Southlake, Texas
28154401.2/11703096