HomeMy WebLinkAboutItem 07 - Certificates of ObligationMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 4, 2022
SUBJECT: RESOLUTION PROVIDING NOTICE OF INTENT TO ISSUE CITY OF
GRAPEVINE CERTIFICATES OF OBLIGATION
RECOMMENDATION: City Council to consider a resolution providing notice of intent to issue City
of Grapevine, Texas Certificates of Obligation.
FUNDING SOURCE:
BACKGROUND: Approval of this action will provide formal notice of intent to issue bonds
for costs associated with Streets and Parks and Recreation projects, as
well as vehicles and equipment for Fire, Police, Public Works and Parks
and Recreation. The "not to exceed" amount for the Certificates of
Obligation is $14,500,000 as presented at the September 20 City Council
meeting by City Staff.
The estimated amounts to be funded include:
Vehicles 6,745,042
Streets 4,900,000
Parks 2,500,000
Issuance costs and adjustments 354,958
Total Estimated obligation 14,500,000
Staff will return on December 6, 2022 for City Council approval for the sale
of the obligation.
Staff recommends approval.
SJ/gj
RESOLUTION NO. 2022-013
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; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF
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; and
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; and
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; and
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. 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 5. The City hereby authorizes the preparation and distribution of a
Notice of Sale and Preliminary Official Statement relating to the Certificates and
authorizes the Chief Financial Officer or City Manager to approve the final form of and
deem 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 6. 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 7. This resolution shall take effect immediately from and after its
passage by the City Council of the City.
(Signature page follows)
INTRODUCED, READ AND PASSED by the affirmative vote of the City Council of
the City of Grapevine, Texas this 4th day of October, 2022.
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
APPROVED:
William D. Tate
Mayor
Signatitre Pope to Notice ofInterrt Resolrrtiorr
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 6th day of
December, 2022, 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 $14,500,000, 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) acquiring, improving and equipping land for
parks and recreation purpose in the City, including Settlers Park; (iii) acquiring vehicles
and equipment for police, fire, emergency services, public works, utilities and park and
recreation purposes, and (iv) professional services incurred in connection with items (i)
through (iii), 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 $19,671,279. Such estimate is provided for illustrative
purposes only, and is based on an assumed interest rate of 4.16%. 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 $137,870,000, 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
$16477877462.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 4th day of
October, 2022.
/s/Tara Brooks, City Secretary
City of Grapevine, Texas
# DM-8300644.1