Title
Approving a resolution approving the Preliminary Official Statement and authorizing distribution of such Preliminary Official Statement relating to the City's Combination Tax and Limited Revenue Certificates of Obligation, Series 2019 and Limited Tax Bonds, Series 2019.
Summary
This resolution approving the Preliminary Official Statement is the next step in the process of issuing debt to finance projects approved by the City Council. City staff, financial advisor, bond counsel, and underwriters have been reviewing and revising the preliminary official statement which is the informational document that is sent to prospective investors and rating agencies. This resolution, prepared by bond counsel, will approve the Preliminary Official Statement and authorize its distribution. A revised copy of the Preliminary Official Statement was emailed to the City Council on Friday, January 4, 2019. A copy of the final Official Statement will be provided to each City Councilmember when it is complete.
This debt issuance includes $5.225 million of general obligation (limited tax) bonds for transportation projects and $19.93 million of certificates of obligation debt, comprised of $7.4 million for transportation and $12.53 million for wastewater capital improvement projects. The general obligation debt is the first issuance from the $21.1 million authorized by voters in November 2018. The final step for the City Council in the issuance of this debt is scheduled for January 22, 2019 when Council will conduct a public hearing and award the sale of the certificates and bonds.
Mr. Terrell Palmer, financial advisor, and Mr. Richard Donoghue, bond counsel, will be at the City Council meeting to answer any questions you may have.
Prior City Council Action
At the November 13, 2018 Council meeting, a resolution was approved to begin the process for issuing the Combination Tax and Limited Revenue Certificates of Obligation, Series 2019.
Deadline for City Council Action
To meet the deadlines established for closing on the certificates and bonds on January 22, 2019, and receiving funds on February 19, 2019, the Preliminary Official Statement must be approved at this meeting.
Fiscal Impact
The first debt service payments are due in February 2020.
Funding Expected: Revenue ___ Expenditure ___ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: $19.93 million certificate of obligation
$5.225 million general obligation
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A __ Required _X_ Date Completed: _12/19/2018_
Supporting documents attached:
Preliminary Official Statement Resolution
Certificates of Obligation Capital Improvement (Transportation) Projects List
FY19 Utility Capital Improvement Projects List
Financing Schedule
Recommended Action
Motion to approve the resolution approving the Preliminary Official Statement related to the City's 2019 debt issuance.