Item 4LM E M O R A N D U M
January 12, 2010
To:
Shana Yelverton, City Manager
From:
Sharen Jackson, Director of Finance
Subject:
Resolution No. 10-007, Approving and authorizing publication of
notice of intention to issue certificates of obligation for capital
improvement projects.
Action
Requested:
Approval of Resolution No. 10-007 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
lessthan that amount, but cannot exceed it. The Resolution
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
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scheduled for April 6. The City would receive funding late April.
The proceeds from the bonds will be used for street, park
improvements, DPS facilities and water and sewer capital
improvement projects.
Financial
Considerations:
The debt will be repaid through the City’s ad valorem tax rate,
park projects will be repaid through SPDC sales tax collections,
DPS projects will be repaid through Crime Control sales tax
collections and water and sewer projects will be repaid through
the City’s utility fund. The allocation of the bond proceeds are as
follows:
General Fund (ad valorem funded) $ 4,360,000
SPDC $ 3,250,000
Crime Control $ 3,000,000
Water and Sewer $ 5,300,000
$15,910,000
The above allocation is in accordance with the approved CIP
budget.
Honorable Mayor and City Council
Page 2 of 2
Strategic Link:
F3 Invest to provide and maintain high quality public assets; C2
Provide travel convenience within city and region
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 April 6, 2010 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 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. 10-007
Staff
Recommendation:
Approval of Resolution No.10-007
RESOLUTION NO. 2010-_____
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 V.T.C.A., Local Government Code, Subchapter C of Chapter 271 (the "Act"), for the purpose
of paying contractual obligations to be incurred for (i) the construction of public works, to wit:
(a) constructing and improving streets and sidewalks, including the acquisition of land and
rights-of-way therefor, (b) improvements and extensions to the City’s combined Waterworks and
Sewer System, (c) acquiring, constructing, improving and equipping criminal justice facilities,
including the acquisition of land therefor, and (d) acquiring, constructing, improving and
equipping park and recreation facilities, including the acquisition of land 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 Council's intention to issue certificates of obligation during a meeting scheduled
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to begin at 6:00 P.M. on the 6 day of April, 2010, which certificates of obligation shall be
issued in one or more series, in a principal amount not to exceed $16,250,000 for the purpose of
paying contractual obligations to be incurred for (i) the construction of public works, to wit:
(a) constructing and improving streets and sidewalks, including the acquisition of land and
rights-of-way therefor, (b) improvements and extensions to the City’s combined Waterworks and
Sewer System, (c) acquiring, constructing, improving and equipping criminal justice facilities,
including the acquisition of land therefor, and (d) acquiring, constructing, improving and
equipping park and recreation facilities, including the acquisition of land 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
Exhibit A
published shall read substantially in the form and content of 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 V.T.C.A., Government Code, Chapter 551, as amended.
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SECTION 4: This Resolution shall be in force and effect from and after its passage on
the date shown below.
PASSED AND ADOPTED, this January 19, 2010.
CITY OF SOUTHLAKE, TEXAS
________________________________
Mayor
ATTEST:
___________________________
City Secretary
(City Seal)
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60255711.1/10510713
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
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6:00 P.M. on the 6 day of April, 2010, 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 $16,250,000 for the purpose of paying contractual obligations to be incurred for (i) the
construction of public works, to wit: (a) constructing and improving streets and sidewalks,
including the acquisition of land and rights-of-way therefor, (b) improvements and extensions to
the City’s combined Waterworks and Sewer System, (c) acquiring, constructing, improving and
equipping criminal justice facilities, including the acquisition of land therefor, and (d) acquiring,
constructing, improving and equipping park and recreation facilities, including the acquisition of
land 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 V.T.C.A., Local
Government Code, Subchapter C of Chapter 271.
Lori Payne
City Secretary
City of Southlake, Texas
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60255711.110510713