Item 6BCity of Southlake, Texas
MEMORANDUM
February 19, 2008
TO: Shana Yelverton, City Manager
FROM: Sharen Jackson, Director of Finance
SUBJECT: Ordinance No. 938, Consider all matters incident and related to the issuance
and sale of "City of Southlake, Texas, Tax and Waterworks and Sewer
System (Limited Pledge) Revenue Certificates of Obligation, Series 2008,"
including the adoption of an ordinance authorizing the issuance of such
certificates of obligation to fund roadway, including sidewalks and the
purchase of land, rights -of -way, and storm drainage capital improvements,
as well as combined waterworks and sewer system extensions and capital
improvements, and professional services related to the projects and
financing thereof.
Action Requested: Approval of Ordinance No. 938 authorizes the issuance of
certificates of obligation for the purpose of funding capital
improvement projects.
Information: On January 15, 2008, the Council approved Resolution No. 08-
005. This authorized 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 adoption of an ordinance.
Approval of Ordinance No. 938 will set in motion the legal
requirements to obtain the proceeds. After approval, the legal
documents must be reviewed by the Texas Attorney General's
Office. The City would receive funding in early April. The
proceeds from the bonds will be used for roadway, storm drainage,
waterworks, and sewer system capital projects.
Financial
Considerations: The debt will be repaid through the City's ad valorem tax rate and
a limited pledge of net revenues from the operation of the City's
Waterworks and Sewer System. The proceeds from the bonds will
be used to fund the approved projects in the 2007 -08 capital
improvement budget. Bond package is approximately
$14,085,000.
Citizen Input/
Board Review: Public Hearing is scheduled for February 19, 2008.
Legal Review: Fulbright and Jaworski serve as the City's bond counsel, and as
such have prepared the Ordinance.
Alternatives: In the absence of issuing the certificates, capital projects would be
funded on a pay -as- you -go basis. Budgets and timing of the
projects would be prioritized based on the amount of revenue
projected by fiscal year.
Supporting
Documents: Ordinance No. 938 to be distributed by Fullbright and Jaworski
during the February 19, 2008 Council meeting.
Staff
Recommendation: Approval of Ordinance No. 938