HomeMy WebLinkAboutItem 06 - Grapevine Tax Notes !TEM it
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: DECEMBER 16, 2008
SUBJECT: SALE OF CITY OF GRAPEVINE TAX NOTES
RECOMMENDATION:
City Council to consider an ordinance providing for the issuance of City of Grapevine, Tax
Notes, Series 2008, in the aggregate principal amount of $4,260,000; awarding the sale
of said notes; levying a tax in payment thereof; prescribing the form of said notes;
approving the official statement; and enacting other provisions relating thereto.
BACKGROUND:
At the December 16, 2008 City Council meeting, a representative of the First Southwest
Company, the City's financial advisor, will present bids for the sale of $4,260,000 of Tax
Notes.
Proceeds from the sale of Tax Notes will be used for the public purpose of providing funds
for the demolition of existing structures in the 600 Block of Main Street; the design,
engineering and construction of facilities for the City's Convention and Visitor's Bureau in
the 600 Block of Main Street; and, payment of the costs and expenses associated with
issuing the Notes.
This is the first step in financing the Capital and Equipment needs for fiscal year
2008/2009. Another financing will occur after the first of the year in order to acquire the
funds necessary for the completion of the CVB building, equipment purchase and other
items in the Capital Improvement Program. It is anticipated that the funding mechanism
will be Certificates of Obligation.
Copies of the draft sale ordinance and purchase agreement are on file in the City
Secretary's Office for public inspection.
Staff recommends acceptance of the First Southwest Company's recommendations and
approval of the sale ordinance.