Item 9BCity of Southlake, Texas
MEMORANDUM
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance Ext. 1713
SUBJECT: Resolution No. 04 -030, Approving and authorizing publication of notice of
intention to issue certification of obligation for water and sewer improvements
and extensions.
Action Requested: Approval of Resolution No. 04 -030 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 water and sewer improvements and
extensions.
Financial
Considerations: The debt will be repaid through the utility fund's revenue. 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 -030
Staff
Recommendation: Approval of Resolution No. 04 -030
RESOLUTION NO. 04 -030
A RESOLUTION approving and authorizing publication of notice of intention to
issue certificates of obligation for water and sewer improvements and
extensions.
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:
improvements and extensions to the City's combined Waterworks and Sewer System 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 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: improvements and
extensions to the City's combined Waterworks and Sewer System and (ii) professional services
rendered in relation to such projects and the financing thereof; and shall be payable from ad
valorem taxes and a 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: improvements and extensions to the City's combined Waterworks and Sewer
System, 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 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