Item 9ACity of Southlake, Texas
MEMORANDUM
TO: Shana Yelverton, City Manager
FROM: Sharen Elam, Director of Finance Ext. 8042
SUBJECT: Resolution No. 05 -075, Approving and authorizing publication of notice of
intention to issue certification of obligation for street and drainage
improvements.
Action Requested: Approval of Resolution No. 05 -075 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 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 scheduled for January 17, 2005 . The City would receive the funds mid
February. The proceeds from the bonds will be used for street and storm
drainage.
Financial
Considerations: The debt will be repaid through the City's ad valorem tax rate. The proceeds
from the bonds will be used to fund the approved projects in the 2004 -05 and
2005 -06 capital improvement budget. Bond package is a total of $6,075,000.
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 January 17, 2005.
Legal Review: Greg Schaecher with 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. 05 -075
Staff
Recommendation: Approval of Resolution No. 05 -075
RESOLUTION NO. 05 -075
A RESOLUTION approving and authorizing publication of notice of intention to
issue certificates of obligation for street and drainage improvements.
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: street and
drainage improvements, including the purchase of land and rights -of -way therefore, 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
to begin at 5:30 P.M. on the 17th day of January, 2006, which certificates of obligation shall be
issued in a principal amount not to exceed $6,075,000 for the purpose of paying contractual
obligations to be incurred for (i) the construction of public works, to wit: street and drainage
improvements, including the purchase of land and rights -of -way therefore, 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 fifteen (15) 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.
SECTION 4: This Resolution shall be in force and effect from and after its passage on
the date shown below.
PASSED AND ADOPTED, this December 6, 2005.
CITY OF SOUTHLAKE, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
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
5:30 P.M. on the 17th day of January, 2006, at the 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 an amount not to exceed $6,075,000 for
the purpose of paying contractual obligations to be incurred for (i) the construction of public
works, to wit: street and drainage improvements, including the purchase of land and rights -ofway
therefore, 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 Farwell
City Secretary
City of Southlake, Texas