Item 4GCity of Southlake, Texas
M E M O R A N D U M
TO: Shana Yelverton, City Manager
FROM: Sharen Jackson, Director of Finance
Resolution No. 08-005, Approving and authorizing publication of notice of
SUBJECT:
intention to issue certificates of obligation for capital improvement projects.
___________________________________________________________________________
Action Requested:
Approval of Resolution No. 08-005 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
st
is scheduled for February 19, 2008. The City would receive funding April 1.
The proceeds from the bonds will be used for street, storm drainage, water and
sewer capital improvement projects.
Financial
Considerations:
The debt will be repaid through the City’s ad valorem tax rate, water and sewer
projects will be repaid through the City’s utility fund and storm drainage
projects will be repaid through the City’s storm water drainage fund. The
allocation of the bond proceeds are as follows:
General Fund (ad valorem funded) $ 4,127,000
Water and Sewer $ 7,066,000
Storm Water Drainage $ 2,500,000
$13,693,000
The above allocation is in accordance with the approved CIP budget.
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 February 19, 2008 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.
Shana Yelverton, City Manager
January 10, 2008
Page 2
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. 08-005
Staff
Recommendation:
Approval of Resolution No. 08-005
RESOLUTION NO. 08-_____
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, 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) drainage
improvements, (b) street improvements, including sidewalks and the acquisition of land and
rights-of-way, (c) improvements and extensions to the City’s combined Waterworks and Sewer
System, and (d) park improvements, 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
th
day of February, 2008, which certificates of obligation shall be
to begin at 6:00 P.M. on the 19
issued in a principal amount not to exceed $14,185,000 for the purpose of paying contractual
obligations to be incurred for (i) the construction of public works, to wit: (a) drainage
improvements, (b) street improvements, including sidewalks and the acquisition of land and
rights-of-way, (c) improvements and extensions to the City’s combined Waterworks and Sewer
System, and (d) park improvements, 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 V.T.C.A., Government Code, Chapter 551, as
amended.
: This Resolution shall be in force and effect from and after its passage on
SECTION 4
the date shown below.
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75191176.108006101
PASSED AND ADOPTED, this January 15, 2008.
CITY OF SOUTHLAKE, TEXAS
________________________________
Mayor
ATTEST:
___________________________
City Secretary
(City Seal)
2
75191176.1/08006101
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
th
day of February, 2008, at the City Hall, 1400 Main Street, Southlake,
6:00 P.M. on the 19
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 an amount not to exceed
$14,185,000 for the purpose of paying contractual obligations to be incurred for (i) the
construction of public works, to wit: (a) drainage improvements, (b) street improvements,
including sidewalks and the acquisition of land and rights-of-way, (c) improvements and
extensions to the City’s combined Waterworks and Sewer System, and (d) park improvements,
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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75191176.108006101