HomeMy WebLinkAboutItem 09 - Certificates of ObligationMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: APRIL 16, 2024
SUBJECT: CONSIDER A RESOLUTION PROVIDING NOTICE OF INTENT TO
ISSUE CERTIFICATES OF OBLIGATION
RECOMMENDATION: City Council to consider a resolution authorizing publication of notice of
intention to issue certificates of obligation in a principal amount not to
exceed $36,700,000; approving the preparation of a preliminary official
statement and a notice of sale; and providing for the effective date.
FUNDING SOURCE: None required
BACKGROUND: Approval of this action will provide formal notice of intent to issue bonds
for the costs associated with the Municipal Service Center building
renovation, expansion and improvement of the Water and Wastewater
Treatment buildings, and Storm Drainage maintenance and improvement
projects. The not to exceed amount of $36,700,000 for Certificates of
Obligation are estimated as follows:
- Municipal Service Center $15,000,000
($10m ad valorem pledge, $5m self -supported)
- Water and Wastewater Treatment $20,000,000 (self -supported)
- Storm Drainage $1,700,000 (self -supported)
On November 21, 2023, Council approved the reimbursement resolution
up to $10,000,000 prior to the project's incurring costs. Staff anticipates
returning to Council on June 18, 2024 for approval of the ordinance and
issuance of the obligation.
Staff recommends approval.