Item 4ECITY OF
SOUTHLAKE
Item 4E
MEMORANDUM
May 14, 2024
To: Alison Ortowski, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Resolution No. 24-019, approving and authorizing publication
of notice of intent to issue certificates of obligation for water
and wastewater projects
Action
Requested: Approval of Resolution No. 24-019 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 ($11,250,00) 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 August 6t". The city
would receive funding in early September. 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 February 20t". All
other projects included in the approved FY 2024 Capital
Improvement Program 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: F2: Investing to provide & maintain high quality public
assets.
Page 2 of 2
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
August 6, 2024, with the Ordinance.
Legal Review: The law firm Norton Rose Fulbright US LLP 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 the fiscal year.
Supporting
Documents: Resolution No. 24-019
Staff
Recommendation: Approval of Resolution No. 24-019
RESOLUTION NO. 24-019
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, for the purpose of paying
contractual obligations to be incurred for (1) constructing, improving, extending and equipping the
City's combined waterworks and sewer system, including the purchase of land and rights -of -way
therefor; (2) designing, constructing and equipping a City administrative facility supporting various
City divisions, including the utility billing/customer service, streets and drainage, water,
wastewater, environmental services and traffic divisions and (3) 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
SOUTHLAKE, 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 $11,250,000 for the purpose of paying contractual
obligations to be incurred for (1) constructing, improving, extending and equipping the City's
combined waterworks and sewer system, including the purchase of land and rights -of -way
therefor; (2) designing, constructing and equipping a City administrative facility supporting various
City divisions, including the utility billing/customer service, streets and drainage, water,
wastewater, environmental services and traffic divisions and (3) professional services rendered
in connection therewith. 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 aforesaid notice to be (i) 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 forty-six (46) days prior to the date stated therein for the
passage of the ordinance authorizing the issuance of the certificates of obligation and (ii) posted
continuously on the City's website for at least forty-five (45) days before the date stated therein
for the passage of the ordinance authorizing the issuance of the certificates of obligation.
SECTION 3. That 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.
SECTION 4. That this Resolution shall become effective immediately from and after its
passage.
201391668.2/ 1001303467
PASSED AND ADOPTED, this May 21, 2024
CITY OF SOUTHLAKE, TEXAS
Mayor
ATTEST:
City Secretary
(City seal)
201391668.2/ 1001303467
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 August 6, 2024, at City Hall, 1400 Main Street, Southlake, Texas, and, during such
meeting, the City Council will consider the passage of an ordinance authorizing the issuance of
certificates of obligation in one or more series in an amount not to exceed ELEVEN MILLION
TWO HUNDRED FIFTY THOUSAND DOLLARS ($11,250,000) for the purpose of paying
contractual obligations to be incurred for (1) constructing, improving, extending and equipping the
City's combined waterworks and sewer system, including the purchase of land and rights -of -way
therefor; (2) designing, constructing and equipping a City administrative facility supporting various
City divisions, including the utility billing/customer service, streets and drainage, water,
wastewater, environmental services and traffic divisions and (3) professional services rendered
in connection therewith; such certificates of obligation to be payable from ad valorem taxes and
a lien on and limited pledge of the net revenues of the City's combined Waterworks and Sewer
System. In accordance with Texas Local Government Code Section 271.049, (i) the current
principal amount of all of the City's outstanding public securities secured by and payable from ad
valorem taxes is $57,346,000; (ii) the current combined principal and interest required to pay all
of the City's outstanding public securities secured by and payable from ad valorem taxes on time
and in full is $65,804,532; (iii) the estimated combined principal and interest required to pay the
certificates of obligation to be authorized on time and in full is $14,466,812; (iv) the maximum
interest rate for the certificates may not exceed the maximum legal interest rate; and (v) the
maximum maturity date of the certificates to be authorized is February 15, 2039. The certificates
of obligation 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.
City Secretary
City of Southlake, Texas
Exhibit A
201391668.2/ 1001303467