15-Issuance and Sale of GO Bonds Series 2017

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Item No. 15 memorandum TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: ISSUANCE & SALE OF CITY OF PARIS GO BONDS, SERIES 2017 DATE: July 17, 2017 BACKGROUND: On May 6, 2017 Paris citizens voted to issue $10,000,000 in General Obligation Bonds with $9.5 million dedicated to rebuild local streets and $500 thousand dedicated to park improvements. The City staff working with Samco Capital Markets, Inc. (the City's financial advisors) and McCall, Parkhurst & Horton L.L.P. (the City's bond attorneys) have issued an official notice of sale, bid form, and official statement for these bonds. City staff has also worked with Moody's Investors Service to obtain a bond rating for this issue. On July 17, 2017 Moody's issued its credit opinion assigning these bonds an Aa3 rating and maintain that same Aa3 rating on the City previously issued debt. STATUS OF ISSUE: Bids will be received July 24, 2017 at the Dallas offices of Samco Capital Markets, Inc. A summary of those bids will be provided at the council meeting. An ordinance has been prepared authorizing the issuance of these bonds and approving all other matters incident to the bond issuance. Council may approve or reject any of the bids. BUDGET: Cost of the bond issuance will be paid from the bond proceeds. RECOMMENDATION: The staff recommends the following motion: I move to adopt an ordinance authorizing the issuance and sale of "City of Paris, Texas, General Obligation Bonds, Series 2017" and approving all other matters related thereto.