HomeMy WebLinkAboutItem 17 - Certificates of Obligation ITEM # _. �
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER X12
MEETING DATE: OCTOBER 20, 2009
SUBJECT: RESOLUTION DIRECTING PUBLICATION OF A NOTICE OF
INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
RECOMMENDATION:
City Council to consider approving a resolution directing publication of a notice of intention
to issue certificates of obligation in the amount of$2,050,000.
FUNDING SOURCE:
Future issue of certificates of obligation for the purposes of improvements to the Vineyards
Campground and the purchase of a mobile hand held ticket writing system.
BACKGROUND:
This resolution provides notice of the intent to sell certificates of obligation. The certificates
are the funding mechanism for the financing of the improvements at the Vineyards
Campground in the amount of$1,704,000. In addition, $253,340 will be used to purchase
the e-mobile citation system for the Police Department, the Municipal Court and other City
departments.
The actual sale of the certificates will be placed on a future agenda.
October 15,2009(9:20AM)
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, RELATING TO THE GIVING OF
NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE,
TEXAS COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2009A 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. That the findings and determinations set forth in the preambles
hereto 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 2009A
NOTICE IS HEREBY GIVEN that on December 1, 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
$2,050,000 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
equipment, including mobile data recorders, for municipal court purposes, (ii) park and
recreation improvements, including improvements to The Vinyards Campground (items
(i) and (ii) together, the "Project"), and (iii) 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 thereof as the same matures, as authorized by Subchapter C,
Chapter 271, 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.
THIS NOTICE is given in accordance with law and as directed by the City
Council of the City of Grapevine, Texas.
GIVEN THIS October 20, 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 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 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 20th day of October, 2009.
APPROVED:
ATTEST:
RES. NO. 2
APPROVED AS TO FORM:
RES. NO. 3