HomeMy WebLinkAboutItem 05 - Certificates of Obligation !TE
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE t;UUNVIL
FROM: BRUNO RUMBELOW, CITY MANAGE
�.h
MEETING DATE: MARCH, 2009
SUBJECT: RESOLUTION OF INTENT TO AUTHORIZE THE ISSUANCE OF
CERTIFICATES OF OBLIGATION
RECOMMENDATION:
Staff recommends the Council approve the Resolution of Intent to issue Certificates of
Obligation for the purchase of new equipment and the funding for construction of the
Convention and Visitor's Bureau Office Building.
BACKGROUND:
In order to fund equipment purchases in Fire, Police and the Golf Course it will be necessary
to issue Certificates of Obligation. The not to exceed amount for the Certificates of Obligation
is $9,250,000. The sale of the Certificates will be held at the May 5, 2009 City Council
meeting.
Staff recommends approval.
JFMCG
RESOLUTION
A RESOLUTION RELATING TO THE GIVING OF NOTICE OF
INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2009 AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas (the "City"), pursuant to Subchapter C,
Chapter 271, Texas Local Government Code, as amended, is authorized to issue its certificates of
obligation for the purpose of paying contractual obligations to be incurred for the purposes set
forth below; and
WHEREAS, the City Council of the City 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;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, THAT:
Section 1. The findings and determinations set forth in the preambles hereto are
hereby incorporated by reference for all purposes.
Section 2. The City Secretary of the City is hereby authorized and directed to issue a
notice of intention to issue certificates of obligation in substantially the following form:
NOTICE OF INTENTION TO ISSUE CITY OF
GRAPEVINE, TEXAS COMBINATION TAX
AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2009
NOTICE IS HEREBY GIVEN that on May 5, 2009 the City Council of the City of
Grapevine, Texas, at 7:30 p.m. at a regular meeting of the City Council to be held at the City
Hall, 200 Main Street, Grapevine, Texas, the regular meeting place of the City Council, intends
to pass an ordinance authorizing the issuance of not to exceed $9,250,000 principal amount of
Certificates of Obligation for the purpose of paying contractual obligations to be incurred for the
following purposes, to wit: (i) acquisition of public safety, firefighting and golf course vehicles,
(ii) designing, constructing, improving, renovating and equipping the City' s Convention and
Visitor's Bureau facilities, (items (i) and (ii) together, the "Project"), (ii)payment of
professional services of attorneys, financial advisors and other professionals in connection with
the Project and the issuance of the Certificates. The Certificates shall bear interest at a rate not to
exceed fifteen percent (15%) per annum, and shall have a maximum maturity date of not later
than forty (40) years after their date. Said Certificates shall be 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
Dallas 1228451v.2
thereof as the same matures, as authorized by Subchapter C, Chapter 271, Texas Local
Government Code, as amended, and from all of a part of the revenues of the City' s Hotel
Occupancy Tax.
THIS NOTICE is given in accordance with law and as directed by the City Council of the
City of Grapevine, Texas.
GIVEN THIS March 24 2009.
/s/Linda Huff
City Secretary
City of Grapevine, Texas"
Section 3. The foregoing notice shall be published once a week for two consecutive
weeks, the date of the first publication being not less than the fourteenth (14th) day prior to the
date set forth in the foregoing notice for passage of the ordinance authorizing the Combination
Tax and Revenue Certificates of Obligation. Such notice shall be published in a newspaper of
general circulation in the area of the City of Grapevine, Texas.
Section 4. That this resolution shall take effect from and after the date of its passage.
PASSED, APPROVED AND EFFECTIVE March 24, 2009.
Dallas 1228451v.2