HomeMy WebLinkAboutItem 09 - Combination Tax and Revenue Certificates of Obligation ITEM
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGERZ
MEETING DATE: SEPTEMBER 21, 2010
SUBJECT: RESOLUTION RELATING TO THE GIVING OF NOTICE OF
INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2010 AND PROVIDING AN EFFECTIVE
DATE
RECOMMENDATION:
City Council to consider approving a resolution directing publication of a Notice of Intention
to issue Certificates of Obligation in the amount of $500,000.
FUNDING SOURCE:
Future issue of Certificates of Obligation for the purposes of improvements to Lake Parks
capitalized interest and issuance casts. Funding source will be paid, all or in part, by Lake
Parks System's excess revenues.
BACKGROUND:
This item is placed on the agenda pursuant to direction from Bond Counsel in order to
meet necessary requirements for selling Certificates of Obligation. This resolution was
placed on the September 7, 2010 Council meeting and was approved. However, the
resolution failed to Fist a secondary revenue source for the repayment of the Certificates.
This secondary revenue source will come from the surplus revenues of the City's Lake
Parks System. Funding from the sale of the Certificates will be used as follows:
Lake Parks Improvements
Designing, constructing, improving, renovating and equipping
the Vineyards Campground $500,000
The sale date for the Certificates of Obligation is scheduled for November 2, 2010. If
approved by the Council, the required notices will be published September 25, 2010 and
October 2, 2010. A copy of the proposed notice is attached.
The sale will be a private placement with a local bank. There will be an option of the City to
pre-pay any or all prior to maturity of the Certificates of Obligation. Additional cabin
revenue will cover the cost of the debt service and operations costs associated with the
cabins.
Staff recommends approval.
P
RESOLUTION NO. o --
A RESOLUTION RELATING TO THE GIVING OF NOTICE
OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2010 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; and
WHEREAS, all statutory and legal prerequisites for the passage of this resolution
have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council of the City has determined that it is in the best
interest of the health, safety, and welfare of the citizens of Grapevine, Texas to adopt
this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the findings and determinations set forth hereinabove are
found to be true and correct and are hereby incorporated by reference for all purposes.
Section 2. That 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 2010
NOTICE IS HEREBY GIVEN that on November 2, 2010, 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 South Main Street, Grapevine, Texas, the regular meeting
place of the City Council, intends to pass an ordinance authorizing the issuance of not
to exceed $500,000.00 principal amount of Certificates of Obligation for the purpose of
paying contractual obligations to be incurred for the following purposes, to wit: (i)
designing, constructing, improving, renovating and equipping the Vineyards
Campgrounds, 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
four percent (4.0%) per annum, and shall have a maximum maturity date of not later
than eleven (11) 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 thereof as the same matures, as authorized by Subchapter C,
Chapter 271, Texas Local Government Code, as amended, and from all or part of the
surplus revenues of the City's Lake Parks System.
THIS NOTICE is given in accordance with law and as directed by the City
Council of the City of Grapevine, Texas.
GIVEN THIS September 21, 2010.
Isl Linda Huff
City Secretary
City of Grapevine, Texas"
Section 3. That the foregoing notice shall be published once a week for two
consecutive weeks, the date of the first publication being not less than the thirtieth
(30th) 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 hereby repeals Resolution No. 2010.27
adopted September 7, 2010 by the Grapevine City Council.
Section 5. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 21st day of September, 2010.
APPROVED:
RES. NO. 2
ATTEST:
APPROVED AS TO FORM:
RES. NO. 3