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Item 9ACity of Southlake, Texas MEMORANDUM TO: Billy Campbell, City Manager FROM: Sharen Elam, Director of Finance Ext. 1713 SUBJECT: Resolution No. 04 -029, Approving and authorizing publication of notice of intention to issue certification of obligation for street and drainage improvements. Action Requested: Approval of Resolution No. 04 -029 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 June 1, 2004 . The City would receive early July. 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 2003 -04 capital improvement budget. Bond package is a total of $3,500,000. 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 June 1, 2004. Legal Review: Ed Esquivel 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. 04 -029 Staff Recommendation: Approval of Resolution No. 04 -029 RESOLUTION NO. 04 -029 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 therefor, (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 6:30 P.M. on the 1stday of June, 2004, which certificates of obligation shall be issued in a principal amount not to exceed $3,500,000 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 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 "System ") remaining after payment of operating and maintenance expenses of the System and payments for "Prior Lien Obligations" (as defined in said ordinance). 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 May 4, 2004. 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 6:30 o'clock P.M. on the 1st day of June, 2004, 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 $3,500,000 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 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 "System ") remaining after payment of operating and maintenance expenses of the System and payments for "Prior Lien Obligations" (as defined in said ordinance). 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