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Item 4ICITY OF SOUTH LAKE MEMORANDUM February 22, 2011 To: Shana Yelverton, City Manager From: Sharen Jackson, Director of Finance Subject: Resolution No. 11 -015, Approving and authorizing publication of notice of intention to issue Certificates of Obligation, Series 2011B for capital improvement projects. Action Requested: Approval of Resolution No. 11 -015 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 $3,465,000, 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 May 17 The City would receive funding mid June. The proceeds from the bonds will be used for constructing improvements and extensions to the City's combined waterworks and sewer system, including the purchase of land, right of way and equipment in accordance with the city's approved capital improvement plan. Financial Considerations: The debt will be repaid through the City's utility fund. Strategic Link: F2 Invest to provide and maintain high quality public assets; C2 Provide travel convenience within City and region C3 Provide attractive and unique spaces for enjoyment of personal interests 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 May 17, 2011 with the Ordinance. Legal Review: The law firm Fulbright and Jaworski serves as the City's bond counsel, and as such has prepared the Resolution. Honorable Mayor and City Council Page 2 of 2 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. 11 -015 Staff Recommendation: Approval of Resolution No. 11-015 RESOLUTION NO. - A RESOLUTION approving and authorizing publication of notice of intention to issue certificates of obligation. WHEREAS, the City Council of the City of Southlake, Texas (the "City "), has determined that certificates of obligation should be issued under and pursuant to the provisions of Texas 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, including the purchase of land, rights -of -way, and equipment therefor, 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 6:00 P.M. on the 17 day of May, 2011, which certificates of obligation shall be issued in one or more series, in a principal amount not to exceed $3,465,000 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, including the purchase of land, rights -of -way, and equipment 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 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 thirty -one (3 1) 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 Texas Government Code, Chapter 551, as amended. 77009421.108014000 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 1, 2011. CITY OF SOUTHLAKE, TEXAS ATTEST: City Secretary (City Seal) Mayor 77009421.1/08014000 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 6:00 P.M. on the 17 day of May, 2011, at the City Hall, 1400 Main Street, Southlake, Texas, and, during such meeting, the City Council will consider the passage of one or more ordinances authorizing the issuance of certificates of obligation, in one or more series, in an amount not to exceed $3,465,000 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, including the purchase of land, rights -of -way, and equipment 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 certificates are to be issued, and this notice is given, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271. Lori Payne City Secretary City of Southlake, Texas 77009421.108014000