14 - Sale of Combination Tax & Surplus Revenue Certificates of Obligation Series 2024

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Item No. 14 memorandum TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION TO FINANCE THE CONSTRUCTION OF A WASTEWATER TREATMENT PLANT. DATE: March 25, 2024 BACKGROUND: On January 22, 2024 the City Council approved a Notice of Intention Resolution (NOI) to issue certificates of obligation to pay for the final construction phase of the new wastewater treatment plant. This action authorized the City's financial advisor SAMCO, legal counsel McCall Parkhurst Horton, and City officials to proceed with the issuance process for the certificates of obligation. The City posted the NOI on its website and published it twice in the newspaper as required by law. STATUS OF ISSUE: The next step in issuing the certificates of obligations needed to complete the new wastewater treatment plant is to adopt an ordinance approving the issuance and sale of "City of Paris, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2024" and approving all documents related to the certificates of obligation. The estimated issue amount of $44,000,000 consists of the construction bid ($39,988,500), SCADA software for the water treatment plant ($500,000), and contingency funds ($3,511,500). BUDGET: A new construction fund and a new Interest & Sinking Fund will be established to handle the expenditure of the CO proceeds and to make the required debt payments. RECOMMENDATION: Suggested motion language to adopt the proposed ordinance: "I move to adopt an ordinance authorizing the issuance and sale of City of Paris, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2024 and approving all other matters related thereto."