Item 9ACity of Southlake, Texas
MEMORANDUM
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance Ext. 1713
SUBJECT: Resolution No. 03 -020, Approving and authorizing publication of notice of
intention to issue certification of obligation for various capital improvement
projects.
Action Requested: Approval of Resolution No. 03 -020 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 April 15, 2003. The City would receive funding Mid May.
The proceeds from the bonds will be used for street, storm drainage, water and
sewer capital improvement projects and the purchase of equipment and
machinery for the police department.
Financial
Considerations: The debt will be repaid through the City's ad valorem tax rate, water and sewer
projects will be repaid through the City's utility fund and Crime Control
district will fund the portion related to public safety. The allocation of the
bond proceeds are as follows:
General Fund (ad valorem funded) $ 7,903,000
Water and Sewer $ 4,036,000
Crime Control District (sales tax) $ 1,000,000
12.939.000
The above allocation is in accordance with the approved 2002 -03 CIP budget.
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 April 15, 2003.
Billy Campbell, City Manager
March 11, 2011
Page 2
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. 03 -020
Staff
Recommendation: Approval of Resolution No. 03 -020
RESOLUTION NO. 03 -020
A RESOLUTION approving and authorizing publication of notice of intention to
issue certificates of obligation for various capital improvement projects.
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: storm
drainage improvements, improvements and extensions to the City's combined Waterworks and
Sewer System, and street improvements, including the purchase of land and rights -of -way
therefor, (ii) the purchase of materials, supplies, equipment and machinery for the police
department, and (iii) 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 15 day of April, 2003, which certificates of obligation shall be
issued in a principal amount not to exceed $13,000,000 for the purpose of paying contractual
obligations to be incurred for (i) the construction of public works, to wit: storm drainage
improvements, improvements and extensions to the City's combined Waterworks and Sewer
System, and street improvements, including the purchase of land and rights -of -way therefor, (ii)
the purchase of materials, supplies, equipment and machinery for the police department, and
(iii) 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 surplus 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.
45292478_1.DOC
SECTION 4 : This Resolution shall be in force and effect from and after its passage on
the date shown below.
PASSED AND ADOPTED, this March 18, 2003.
ATTEST:
City Secretary
(City Seal)
CITY OF SOUTHLAKE, TEXAS
Mayor
45292478_1.DOC 2
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 15 day of April, 2003, 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 $13,000,000 for
the purpose of paying contractual obligations to be incurred for (i) the construction of public
works, to wit: storm drainage improvements, improvements and extensions to the City's
combined Waterworks and Sewer System, and street improvements, including the purchase of
land and rights -of -way therefore, (ii) the purchase of materials, supplies, equipment and
machinery for the police department, and (iii) 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 surplus 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
SOUTHLAKE C_O 2003
RES.DOC