Item 4WCITY OF
SOUTHLAKI
MEMORANDUM
January 30, 2013
To: Shana Yelverton, City Manager
From: Sharen Jackson, Director of Finance
Subject: Resolution No. 13-006, authorizing a Notice of Intent to issue
Certificates of Obligation
Action
Requested: Approval of Resolution No. 13-006 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 161". The City would receive funding mid May.
The proceeds from the bonds will be used for street, park
improvements, water and sewer capital improvement projects and
DPS North facility construction.
Financial
Considerations: The debt will be repaid through the City's ad valorem tax rate,
DPS facility will be repaid through Crime Control District sales tax
collections, and water and sewer projects will be repaid through
the City's utility fund. The allocation of the bond proceeds are as
follows:
General Fund (ad valorem funded) $ 4,500,000
Crime Control District $ 8,500,000
Water and Sewer $ 2,550,000
15,550,000
The above allocation is in accordance with the approved CIP
budget.
Honorable Mayor and City Council
Page 2 of 2
Strategic Link: C1 Achieve the highest standards of safety and security; C2
Provide travel convenience within city and region; F2 Invest to
provide and maintain high quality public assets
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 16, 2013 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.
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. 13-006
Staff
Recommendation: Approval of Resolution No.13-006
RESOLUTION NO. 13-
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, as amended (the "Act"), for the
purpose of paying contractual obligations to be incurred for (i) the construction of public works,
to wit: (a) constructing and improving streets and sidewalks, including the acquisition of land
and rights -of -way therefor, (b) improvements and extensions to the City's combined Waterworks
and Sewer System, including the purchase of land, rights -of -way, and equipment therefor and
(c) acquiring, constructing, improving and equipping public safety facilities, including the
acquisition of land 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 City Council's intention to issue certificates of obligation during a meeting
scheduled to begin at 6:00 P.M. on the 16t' day of April, 2013, which certificates of obligation
shall be issued in one or more series, in a principal amount not to exceed $15,850,000 for the
purpose of paying contractual obligations to be incurred for (i) the construction of public works,
to wit: (a) constructing and improving streets and sidewalks, including the acquisition of land
and rights -of -way therefor, (b) improvements and extensions to the City's combined Waterworks
and Sewer System, including the purchase of land, rights -of -way, and equipment therefor and
(c) acquiring, constructing, improving and equipping public safety facilities, including the
acquisition of land 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 (31) 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.
78650059.1/08006101
SECTION 4: This Resolution shall be in force and effect from and after its passage on
the date shown below.
PASSED AND ADOPTED, this February 5, 2013.
CITY OF SOUTHLAKE, TEXAS
Mayor
ATTEST:
City Secretary
(City Seal)
78650059.1/08006101 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 16t' day of April, 2013, 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 $15,850,000 for the purpose of paying contractual obligations to be incurred for (i) the
construction of public works, to wit: (a) constructing and improving streets and sidewalks,
including the acquisition of land and rights -of -way therefor, (b) improvements and extensions to
the City's combined Waterworks and Sewer System, including the purchase of land, rights -of -
way, and equipment therefor and (c) acquiring, constructing, improving and equipping public
safety facilities, including the acquisition of land 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, as amended.
Alicia Richardson
City Secretary
City of Southlake, Texas
78650059.1/08006101