Item 7A MemoCity of Southlake, Texas
MEMORANDUM
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance Ext. 1713
SUBJECT: Ordinance No. 865, approving and authorizing the issuance of "CITY OF
SOUTHLAKE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2004"
Action Requested: Approval of Ordinance No. 865 authorizes the issuance of certificates of
obligation for the purpose of funding capital improvement projects.
Background
Information: On May 4, 2004, the Council approved Resolution No. 04 -029. 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. 865 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 July. The proceeds from the bonds will be
used for street and storm drainage capital improvement projects.
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: 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 Ordinance.
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: Ordinance No. 865
Staff
Recommendation: Approval of Ordinance No. 865