HomeMy WebLinkAboutR-2004-19 authorize sale of $7,000,000 certificates of obligation
.
e
~ 1)0 .' ~(X)4- ,q
RESOLUTION AUTHORIZING SALE OF APPROXIMATELY $7,000,000
CERTIFICATES OF OBLIGATION
WHEREAS, the City Council of La Porte, Texas (the "City Council") has detelmined that it is in
the best interest of La Porte, Texas (the "City") to issue its Certificates of Obligation in the principal
amount of approximately $7,000,000 ,(the "Certificates") for purposes described in the below described
documents as soon as possible;
WHEREAS, the City Manager, the City's Financial Advisor, and the City's Bond Counsel are
prepared to distribute necessary documents for such sale on a competitive bid basis;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LA PORTE. TEXAS
THAT:
1. The Official Notice of Sale, including the Official Bid Form, and the Preliminary Official
Statement substantially in the forms attached hereto are hereby approved, and the City Manager and the
Financial Advisor are authorized to distribute same among entities which would be interested in bidding
on the Certificates and other interested persons.
2. The City Manager and the Financial Advisor are authorized to apply to rating agencies for a
rating on the Certificates and to bond insurance companies for possible insurance of the payment of the
Certificates and to make presentations to them and provide to such entities the information reasonably
requested by them. ,
3. The City Council hereby deems the Preliminary Official Statement to be final in compliance
with Rule 15c2-12 of the Securities and Exchange Commission. .
4. The City Council hereby authorizes its advisors, the City Manager, and its members to do all
things necessary to sell the Certificates On October 25,2004.
*
*
*
San_Antonio _1\12501\1
.,ooc '" n"''''''tnnA
.
e
REQUEST FOR CITY CO
GENDAITEM
Agenda Date Requested: Se tember 27 2004
Approoriation
Requested By: Cvnthia Alexander. Asst. City Manal!er
Source of Funds: N/A
Department: FINANCE
Account Number: NIA
Report:
Resolution: XX Ordinance:
Amount Budgeted:
Exhibits:
Resolution
Amount Requested:
NIA
Exhibits:
Resolution
Budgeted Item:
Exhibits:
Financing: Schedule
SUMMARY & RECOMMENDATION
,
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, Orainage 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.
1~d4-0~
Date
De