HomeMy WebLinkAboutR-2004-20 authorize publication of notice to issue certificates of obligation
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RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION .
TO ISSUE CERTIFICATES OF OBLIGATION
WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City"),
finds that financing of the construction of street improvements and extensions to wit: extending Fairmont
Parkway to Spencer Highway and designing and constructing Canada Road from Fairmont Parkway to
Spencer Highway; the purchase of 9.14 acres to be used for the site of a new police headquarters; and
payment of contractual obligations for professional services in connection therewith (to wit: architectural,
engineering, financial advisory, and legal) would be beneficial to the inhabitants of the City and that such
property is needed to perform essential governmental functions, and the City Council has determined that
certificates of obligation (the "Certificates of Obligation") should be issued pursuant to the applicable
laws of the State of Texas, including Chapter 271, Texas Local Government Code, for such purposes;
. WHEREAS, prior to the issuance of the Certificates of Obligation, the City is required to publish
notice of its intention to issue the Certificates of Obligation (the "Notice") in a newspaper of general
circulation in the City, the notice stating (i) the time and place the City Council tentatively proposes to
pass the ordinance authorizing the issuance of the Certificates of Obligation, (ii) the maximum amount of
Certificates of Obligation proposed to be issued, (Hi) the purposes for which ~e Certificates of Obligation
are to be issued, and (iv) the manner in which the City Council proposes to pay the Certificates of
Obligation;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA
PORTE, TEXAS, THAT:
SECTION 1. Attached hereto and marked "Exhibit A" is a form of the Notice, the form and
substance of which are hereby adopted and approved.
SECTION 2. The Mayor or. the City Secretary shall cause the Notice to be published, in
substantially the form attached hereto, in a newspaper, as defined in Section 2051.044, Texas Government
Code, of general circulation in the City for two consecutive weeks, the date of first publication to be at
least ] 4 days prior to the date tentatively set for the ordinance authorizing the issuance of the Certificates
of Obligation.
SECTION 3. The Mayor and the City Secretary are hereby authorized and directed to execute the
Certificate to which this Resolution is attached on behalf of the City Council and to do any or all things
proper and necessary to carry out the intent thereof.
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REQUEST FOR CITY CO
GENDAITEM
Agenda Date Requested: Se tember 27 2004
Aporooriation
Requested By: Cvnthia Alexander. Asst. Citv Manal!er
Source of Funds: N/A
Department: FINANCE
Account Number: NIA
Report:
Resolution: XX Ordinance:
Amount Budgeted:
Exhibits:
Resolution
Amount Requested:
N/A
Exhibits:
Resolution
Budgeted Item:
Exhibits: .
Financinlt Schedule
SUMMARY & RECOMMENDATION
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This is the second partial issuance of the $16.3 million in projects approved by voters in the February 2,
2002 election. At this time, we are ready to issue Certificates of Obligation Bonds for the following
projects:
Bay Area Boulevard Paving, Drainage and Utility Installation
Canada Road Paving & Drainage, & Utility Installation
Police Headquarters Land Acquisition
Total Issuance 2004 Certificates of Obligation
4,400,000
1,900,000
700.000
7,000,000
. While preliminary work was begun on these projects some time ago, it was not desirable for us to issue
debt until this time. City Council has previously approved resolutions that allow the City to reimburse
itself from these bond proceeds for expenditures that were made prior to the issuance of the debt. This is
a position that we have taken on several other projects in the past as recommended by bond counsel and
required by federal law.
In order to issue bonds, a city is required to publish a Notice of Sale. We would like to publish the initial
Notice of Sale for Certificates of Obligation in the amount of $7,000,000 the week of October 4, 2004;
and the second notice the week of October 11,2004.
First Southwest Company, the City's Financial Advisors, has prepared and made available to us a
Preliminary Official Statement which has been reviewed, and is being updated by staff that must also be
approved by Council. .
Action Required bv Council: Authorize the sale of $7,000,000 in Certificates of Obligation; approve
the first and second publication of Notice of Intent to Issue, which also approves the Preliminary Official
Statement.
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