City Council

Agenda Request

Agenda Of:

May 6, 2008

Agenda Request No:

III C

Initiated By:

Jennifer Brown

Asst. Fiscal Services Director

Responsible Department:

Fiscal Services

Presented By:

Jennifer Brown

Asst. Fiscal Services Director

Department Head:

Linda Symank

Director of Fiscal Services

 

 

Additional Department. Head (s):

n/a

Subject / Proceeding:

2008 Certificates of Obligation

Approve Resolution 08-16

Exhibits:

Resolution 08-16

Clearances

Approval

Legal:

n/a

Executive Director:

n/a

Purchasing:

n/a

Asst. City Manager:

Karen Daly

Budget:

n/a

City Manager:

Allen Bogard/for AB

Budget

Expenditure Required:  $

n/a

Current Budget:  $

n/a

Additional Funding:  $

n/a

Recommended Action

Approve Resolution 08-16 authorizing publication of notice of the City’s intent to issue Certificates of Obligation not to exceed $4,560,000 for capital improvements.

Executive Summary

On April 22, 2008 staff presented an overview of planned bond issues for 2008, which cover projects included in both the fiscal year 2007 and 2008 capital improvement plans.  The bond issues identified during the workshop are as follows and also include insurance costs:

·        Utility Revenue Bonds (~$14.9M)

·        General Obligation Bonds (~$6.9M)

·        Certificates of Obligation (~$4.6M)

 

Utility Revenue Bonds are supported through the City’s water and wastewater rates, as they fund projects directly related to utility infrastructure.  The General Obligation Bonds are a portion of the $34.5 million authorized by voters in 1999 and are repaid through the City’s property tax.  Certificates of Obligation are also repaid through property taxes, but are not pre-approved by the voters. 

 

Projects to be funded through the issuance of the Certificates of Obligations include:

 

Project

Amount

Ditch H Extension

$  1,500,000

Sugar Creek Drainage

1,568,500

Localized Drainage Improvements

250,000

Brookside/Belknap Drainage Phase  III

600,000

Storm Sewer Tie Ins to Eldridge Rd.

122,000

Sugar Mill Drainage Improvements

150,000

Facilities Assessment

29,000

Brazos River Park- Phase II

175,000

Projects Total

$  4,394,500

 

Prior to issuing Certificates of Obligation, the City must publish notice of the issue once a week for two consecutive weeks in a newspaper that is of general circulation in the area, with the first date of publication to be at least thirty days before the sale date.  The notice must state:

 

1.      Time and place set for the ordinance authorizing the sale

2.      The maximum amount and purpose of the certificates to be authorized

3.      The manner in which the certificates will be paid by

 

In order to meet the publication dates, staff is presenting Resolution 08-16 for consideration to authorize publication of notices related to the issuance of the Certificates. Attached is the Resolution, which includes the notice that will be placed in the paper.  Staff plans to publish the notice on May 14 and 21, 2008.

 

The Certificates will be bid on a competitive basis. The City’s financial advisor will present the results at the City Council meeting on June 17.  The City Council will consider authorizing the sale by ordinance during the meeting. We anticipate a scheduled sale date of June 17, 2008.  

 

Exhibits

 

RESOLUTION NO. 08-16

RESOLUTION AUTHORIZING PUBLICATION OF NOTICE

OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION

 

 

THE STATE OF TEXAS         §

COUNTY OF FORT BEND   §

CITY OF SUGAR LAND       §

 

 

            WHEREAS, the City Council of the City of Sugar Land, Texas (the “City”), deems it advisable to issue certificates of obligation of the City in accordance with the notice hereinafter set forth; Now, Therefore

 

            BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUGAR LAND:

 

            Section 1.         The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct.

 

            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, a notice of intention to issue certificates of obligation.

 

            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 thirty (30) days before the date tentatively set in said notice for the passage of the ordinance authorizing the issuance of such certificates of obligation.

 

            Section 4.         The Mayor, 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 5.         This resolution shall take effect immediately upon its passage.

 

Section 6.         The notice and agenda relating to this meeting and heretofore posted by the City Secretary, and the posting thereof, are hereby authorized, approved, and ratified.

 

            PASSED AND APPROVED this 6th day of May, 2008.

 

 

                                                                                    /s/ David G. Wallace

                                                                                    ___________________________________

                                                                                    Mayor

                                                                                    City of Sugar Land, Texas

 

ATTEST:

 

 

/s/ Glenda Gundermann

______________________________

City Secretary

City of Sugar Land, Texas

 

(SEAL)

 

 

 

APPROVED AS TO LEGALITY:

 

 

/s/ Thomas A. Sage

____________________________________

Bond Counsel

VINSON & ELKINS L.L.P.

 

NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION

 

 

            NOTICE IS HEREBY GIVEN that the City Council of the City of Sugar Land, Texas (the “City”), will meet at the City Hall, Sugar Land, Texas, at 5:30 p.m. on the 17th day of June, 2008, 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, in the maximum aggregate principal amount of $4,560,000, payable from ad valorem taxation and from a limited pledge of a subordinate lien on the net revenues of the City’s waterworks and sanitary sewer system, bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed thirty (30) years from the date thereof, for the purpose of evidencing the indebtedness of the City for all or part of the cost of the construction of drainage improvements, improvements to City facilities, park improvements and the cost of professional services incurred in connection therewith.

 

            WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 6th day of May, 2008.

 

 

 

                                                                                    /s/ Glenda Gundermann

                                                                                    ___________________________________

                                                                                    City Secretary

                                                                                    City of Sugar Land, Texas

 

(SEAL)