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HomeMy WebLinkAboutItem 09 - Notice of Intention to Issue Tax and Revenue Certificates MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER V)*1%. MEETING DATE: DECEMBER 6, 2016 SUBJECT: A RESOLUTION RELATING TO THE GIVING OF NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION; DECLARING INTENT TO REIMBURSE CERTAIN PRIOR CAPITAL COSTS; AND APPROVING OTHER MATTERS RELATED THERETO RECOMMENDATION: City Council to consider a resolution relating to the giving of notice of intention to issue City of Grapevine, Texas Combination Tax and Revenue Certificates of Obligation; declaring intent to reimburse certain prior capital costs; and approving other matters related thereto. FUNDING SOURCE: Upon approval of the attached resolution, funds will be available in the General Capital Facilities Fund and the Capital Equipment Fund. BACKGROUND: This action will provide notice of intention to issue Certificates of Obligation in the amount of$10,050,000 and allow the City to reimburse an amount up $3,000,000 for expenditures incurred relative to the purchasing of equipment for the IT department, acquiring land for a new fire station, and costs related to the renovation of existing fire stations. It is anticipated that the sale of the Certificates will take place at the January 17, 2017 City Council Meeting. Chief Financial Officer recommends approval. GJ November 30,2016(10:11a11/p11) RESOLUTION No. A RESOLUTION RELATING TO THE GIVING OF NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION; DECLARING INTENT TO REIMBURSE CERTAIN PRIOR CAPITAL COSTS; AND APPROVING OTHER MATTERS RELATED THERETO WHEREAS, the City of Grapevine, Texas (the "City"), pursuant to Chapter 271, Subchapter C, Texas Local Government Code, as amended, is authorized to issue its certificates of obligation (the "Certificates") 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; 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; WHEREAS, all constitutional and statutory prerequisites for the approval of this resolution have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this resolution to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein as if copied in their entirety. Section 2. The findings and determinations set forth in the preambles hereto are hereby incorporated by reference for all purposes. Section 3. 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 issues the Certificates (the "Notice"). Section 4. The Notice shall be published once a week for two consecutive weeks, the date of the first publication being not less than thirty-one (31) days prior to the date set forth in the Notice for passage of the ordinance authorizing the Certificates. Such notice shall be published in a newspaper of general circulation in the area of the City of Grapevine, Texas. Section 5. The City reasonably expects to reimburse itself for costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof and that are to be paid in connection with (i) acquiring equipment for the IT department, (ii) acquiring land for new fire stations and (iii) renovating, remodeling and equipping existing fire stations each as described in Exhibit A (collectively, the "Financed Projects")from the proceeds of the Certificates. Section 6. The City reasonably expects that the maximum principal amount of the Certificates to be issued to reimburse itself for the costs associated with the Financed Projects will be $3,000,000. Such amount is in addition to the amounts authorized for reimbursement in Resolution No. 2016-049, dated June 21, 2016, and Resolution No. 2016-093, dated November 15, 2016. Section 7. The Mayor, City Manager, 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 8. 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 6th day of December, 2016. Resolution No. 2 APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Resolution No. 3 EXHIBIT A NOTICE OF INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that on January 17, 2017, 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 in the Council Chambers at the City Hall, 200 S. Main St., Grapevine, Texas, the regular meeting place of the City Council, intends to pass an ordinance authorizing the issuance of not to exceed $10,050,000 total principal amount of Certificates of Obligation for the purpose of paying contractual obligations to be incurred for the following purposes, to wit: (a) acquiring equipment for the IT department, (b) acquiring land for new fire stations in the Northwest and West areas of the City, (c) renovating, remodeling and equipping existing fire stations (collectively, the "Projects"), and (d) paying professional services of attorneys, financial advisors and other professionals in connection with the Projects and the issuance of the Certificates. The Certificates shall be issued in one or more series, shall bear interest at a rate not to exceed ten percent (10%) per annum, and shall have a maximum maturity date of not later than twenty-five (25) 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 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 revenue 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 December 6, 2016. /s/Tara Brooks, City Secretary City of Grapevine, Texas Resolution No. 4