HomeMy WebLinkAboutRES 2021-007 RESOLUTION NO. 2021-007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING PUBLICATION OF
NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
OBLIGATION; APPROVING THE PREPARATION OF A
PRELIMINARY OFFICIAL STATEMENT AND A NOTICE OF
SALE; PROVIDING FOR THE EFFECTIVE DATE
THEREOF; AND EXPRESSING INTENT TO REIMBURSE
EXPENDITURES TO BE INCURRED
WHEREAS, the City Council (the "City Council") of the City of Grapevine, Texas
(the "City"), deems it advisable to issue certificates of obligation (the "Certificates") of the
City in accordance with the notice hereinafter set forth;
WHEREAS, the City desires to approve the preparation of a preliminary official
statement (the "Preliminary Official Statement") and the preparation of a notice of sale
("Notice of Sale"), in anticipation of its issuance of the Certificates;
WHEREAS, the City Council has found and determined that a notice of intention
to issue certificates of obligation should be published in accordance with the requirements
of applicable law; and
WHEREAS, it is hereby found and determined that the meeting at which this
resolution is considered is open to the public as required by law, and public notice of the
time, place and purpose of said meeting was given as required by Chapter 551, Texas
Government Code;
WHEREAS, the City will make, or has made not more than 60 days prior to the
date hereof, payments with respect to the design, acquisition, construction, reconstruction
or renovation of the projects listed on Exhibit "A" attached hereto (collectively, the
"Financed Project"); and
WHEREAS, the City has concluded that it does not currently desire to issue
obligations to finance the costs associated with the Financed Project; and
WHEREAS, the City desires to reimburse itself for the costs associated with the
Financed Project from the proceeds of obligations to be issued subsequent to the date
hereof; and
WHEREAS, the City reasonably expects to issue obligations to reimburse itself for
the costs associated with the Financed Project and, pursuant to section 1.150-2 of the
Treasury Regulations, hereby declares its intent to do so; and
WHEREAS, all constitutional and statutory prerequisites for the approval of this
resolution have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this resolution to be in the best
interests of the health, safety, and welfare of the public.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. The findings, definitions and recitations set out in the preamble to
this resolution are found to be true and correct and are hereby adopted by City Council
and made a part hereof for all purposes.
Section 2. The City Secretary is hereby authorized and directed to cause to be
published in the manner required by law and in substantially the form attached hereto as
Exhibit "A", a notice of the City's intention to issue the Certificates (the "Notice").
Section 3. The Notice shall be published once a week for two (2) consecutive
weeks in a newspaper which is of general circulation in the City, the date of the first
publication to be at least forty-six (46) days before the date tentatively set in the Notice
for the passage of the ordinance authorizing the issuance of the Certificates. In addition,
the Notice shall be posted continuously on the City's website for at least forty-five (45)
days before the date tentatively set in the Notice for the passage of the ordinance
authorizing the issuance of the Certificates.
Section 4. For purposes of section 1.150-2(d) of the Treasury Regulations, this
Notice serves as the City's official declaration of intent to use proceeds of the Certificates
to reimburse itself from Certificates issued in the maximum principal amount and for
expenditures paid in connection with the projects, each as set forth in Exhibit "A" hereof.
Any such reimbursement will only be made (i) for an original expenditure paid no earlier
than 60 days prior to the date hereof and (ii) not later than 18 months after the later of(A)
the date the original expenditure is paid or (B) the date of with the project to which such
expenditure relates is placed in service or abandoned, but in to event more than three
years after the original expenditure is paid.
Section 5. The Mayor, City Manager, Chief Financial Officer, City Secretary and
other appropriate officials of the City, the City's financial advisor, Hilltop Securities Inc.,
and bond counsel, Bracewell LLP, are authorized and directed to proceed with the
preparation of the Preliminary Official Statement and the Notice of Sale, if any, and to
make other necessary arrangements for the sale of the Certificates at a future meeting of
the City Council of the City.
Section 6. The City hereby authorizes the preparation and distribution of a
Notice of Sale and Preliminary Official Statement relating to the Certificates and
authorizes the Finance Director or City Manager to approve the final form of and deem
Resolution No. 2021-007 2
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EXHIBIT "A"
NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the City of Grapevine, Texas
(the"City"), will meet in the Council Chambers at the City Hall, 200 S. Main St., Grapevine,
Texas, the regular meeting place of the City Council, at 7:30 p.m. on the 3rd day of
August, 2021, which is the time and place tentatively set for the passage of an ordinance
and such other action as may be deemed necessary to authorize the issuance of the
City's certificates of obligation (the "Certificates"), in the maximum aggregate principal
amount not to exceed $11,000,000, payable from the levy of a direct and continuing ad
valorem tax against all taxable property within the City sufficient to pay the interest on this
series of Certificates as due and to provide for the payment of the principal thereof as the
same matures, as authorized by Chapter 271, Subchapter C, Texas Local Government
Code, as amended, and from all or a part of the surplus revenues of the City's waterworks
and sewer system, such pledge of surplus revenues being limited to $1,000, bearing
interest at any rate or rates not to exceed the maximum interest rate authorized by law,
as shall be determined within the discretion of the City Council of the City at the time of
issuance of the Certificates, and maturing over a period not to exceed twenty-five (25)
years from the date of issuance, for the purposes of evidencing the indebtedness of the
City for all or any part of the costs associated with the (i) designing, developing,
constructing, improving, extending, and expanding streets,thoroughfares, sidewalks and
bridges of the City, including streetscaping, streetlighting, right-of-way protection, utility
relocation, and related storm drainage improvements; and acquiring rights-of-way in
connection therewith; (ii) designing, developing and acquiring information technology
systems and equipment; (iii) designing, developing, constructing, improving and
renovating existing City buildings and facilities, including City Hall, public safety, library,
park and recreation, convention and visitors bureau and service center buildings and
facilities, (iv) acquiring vehicles and equipment for police, fire, emergency services, public
works, utilities and park and recreation purposes, and (v) professional services incurred
in connection with items (i) through (iv), and to pay the costs incurred in connection with
the issuance of the Certificates. The estimated combined principal and interest required
to pay the Certificates on time and in full is $13,531,140.54. Such estimate is provided
for illustrative purposes only, and is based on an assumed interest rate of 2.15%. Market
conditions affecting interest rates vary based on a number of factors beyond the control
of the City, and the City cannot and does not guarantee a particular interest rate
associated with the Certificates. As of the date of this notice, the aggregate principal
amount outstanding of tax-supported debt obligations of the City is $138,030,000, and
based on the City's expectations, as of the date of this notice the combined principal and
interest required to pay all of the outstanding tax-supported debt obligations of the City
on time and in full is $178,306,812.70.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 1st day of
June, 2021.
is/Tara Brooks, City Secretary
City of Grapevine, Texas
final such Preliminary Official Statement within the meaning and for the purposes of
paragraph (b)(1) of Rule 15c2-12 of the United States Securities and Exchange
Commission.
Section 7. The City reasonably expects to reimburse itself for all costs that have
been or will be paid subsequent to the date that is 60 days prior to the date hereof and
that are to be paid in connection with the design, acquisition, construction, reconstruction
or renovation of the Financed Project from the proceeds of obligations to be issued
subsequent to the date hereof.
Section 8. The City reasonably expects that the maximum principal amount of
obligations issued to reimburse the City for the costs associated with the Financed Project
will be $3,000,000.
Section 9. The Mayor, City Manager, the Chief Financial Officer, City Secretary,
and other officers and agents of the City are hereby authorized and directed to do any
and all things necessary or desirable to carry out the provisions of this resolution.
Section 10. This resolution shall take effect immediately from and after its
passage by the City Council of the City.
INTRODUCED, READ AND PASSED by the affirmative vote of the City Council of
the City of Grapevine, Texas this 1st day of June, 2021.
APPROVED:
William D. Tate
Mayor
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Tara Brooks
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City Secretary *'*-
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
Resolution No. 2021-007 3