Item 4GM E M O R A N D U M
April 23, 2018
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Resolution No. 18-017, Authorizing a Notice of Intent to issue
Certificates of Obligation
Action
Requested: Approval of Resolution No. 18-017 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 ($4,400,000) 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 19th. The City would
receive funding mid-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 19, 2017. All other projects included in
the approved FY 2018 Capital Budget will be funded with cash.
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/
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 19, 2018 with the Ordinance.
Honorable Mayor and City Council
Page 2 of 2
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 projects would be
funded on a pay-as-you-go basis. Budgets and the timing of
projects would be prioritized based on the amount of revenue
projected by fiscal year.
Supporting
Documents: Resolution No. 18-017
Staff
Recommendation: Approval of Resolution No.18-017
29831231.2/1000197904
RESOLUTION NO. 18-017
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:
improvements and extensions to the City’s combined Waterworks and Sewer System, including
the purchase of land and rights-of-way therefor 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 19th day of June, 2018, which certificates of obligation
shall be issued in one or more series, in a principal amount not to exceed $4,400,000 for the
purpose of paying contractual obligations to be incurred for (i) the construction of public works,
to wit: improvements and extensions to the City’s combined Waterworks and Sewer System,
including the purchase of land and rights-of-way therefor 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.
29831231.2/1000197904 2
SECTION 4: This Resolution shall be in force and effect from and after its passage on
the date shown below.
PASSED AND ADOPTED, this May 1, 2018.
CITY OF SOUTHLAKE, TEXAS
________________________________
Mayor
ATTEST:
___________________________
City Secretary
(City Seal)
29831231.2/1000197904
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 19, 2018, 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
$4,400,000 for the purpose of paying contractual obligations to be incurred for (i) the
construction of public works, to wit: improvements and extensions to the City’s combined
Waterworks and Sewer System, including the purchase of land and rights-of-way therefor 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.
Carol Borges
City Secretary
City of Southlake, Texas