12 - Notice of Intention to Issue Certificates of Obligation to Fund Improvements to Love Civic CenterItem No. 12
TO: Mayor & City Council
FROM: Gene Anderson, Interim City Manager & Finance Director
SUBJECT: NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
TO FUND IMPROVEMENTS TO LOVE CIVIC CENTER
DATE: November 6, 2019
BACKGROUND: In January 2019 the Council passed a resolution designating the renovation of
Love Civic Center as a venue project under Chapter 334 of the Texas Local Government Code,
and called for an election to approve an additional hotel occupancy tax not to exceed 2% to
finance the venue project. The election was held on May 4, 2019 with voters approving the
increased hotel tax rate. The increased rate went into effect July 1St. The City waited until the
next quarter's hotel taxes were paid to verify that the 2% increase would be sufficient to make
the debt payments on $1,500,000 in certificates of obligation issued by the City to finance the
improvements to the civic center. Revenues were sufficient to make such payments.
STATUS OF ISSUE: The Council is requested to approve a resolution requiring notice to be
published in the newspaper and on the City's website indicating that the City intends to issue
certificates of obligation to fund the civic center improvements.
BUDGET: The City will set up an Interest & Sinking Fund in which to deposit the 2% hotel tax
collections that will be used to make principal and interest payments on the certificates of
obligation. This debt will show up in the City's budget each year until the debt is paid.
RECOMMENDATION: Move to adopt a resolution directing newspaper publication and posting
on the City's website of a notice of intention to issue certificates of obligation.
CERTIFICATE FOR RESOLUTION
THE STATE OF TEXAS
COUNTY OF LAMAR
CITY OF PARIS
We, the undersigned officers of the City of Paris, Texas (the "City"), hereby certify as follows:
1. The City Council of the City (the "Council") convened in a regular meeting on November
11, 2019, at the designated meeting place, and the roll was called of the duly constituted officers and
members of said Council, to wit:
Steven J. Clifford, M.D., Councilmember District 4 and Mayor
Renae Stone, Councilmember District 1
Derrick Hughes, Councilmember District 2
Bill Trenado, Councilmember District 3
Linda Knox, Councilmember District 5
Clayton Pilgrim, Councilmember District 6
Paula Portugal, Councilmember District 7 and Mayor Pro -tem
Janice Ellis, City Clerk
and all of said persons were present except thus
constituting a quorum. Whereupon, among other business the following was transacted
at said meeting:
a written
A RESOLUTION DIRECTING NEWSPAPER PUBLICATION AND WEBSITE POSTING OF
NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION; AND RESOLVING
OTHER MATTERS RELATING TO THE SUBJECT
was duly introduced for the consideration of the Council. It was then duly moved and seconded that said
Resolution be adopted and, after due discussion, said motion, carrying with it the adoption of said
Resolution, prevailed and carried with all members present voting "AYE" except the following:
NAY: ABSTAIN:
2. A true, full and correct copy of the aforesaid Resolution adopted at the meeting described
in the above and foregoing paragraph is attached to and follows this Certificate; that said Resolution has
been duly recorded in the Council's minutes of said meeting; that the above and foregoing paragraph is a
true, full and correct excerpt from the Council's minutes of said meeting pertaining to the adoption of said
Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified
and acting officers and members of the Council as indicated therein; that each of the officers and
members of the Council was duly and sufficiently notified officially and personally, in advance, of the
time, place and purpose of the aforesaid meeting, and that said Resolution would be introduced and
considered for adoption at said meeting, and each of said officers and members consented, in advance, to
the holding of said meeting for such purpose, and that said meeting was open to the public and public
notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas
Government Code.
3. The Council has approved and hereby approves the aforesaid Resolution; and the Mayor and
the City Clerk of the City hereby declare that their signing of this Certificate shall constitute the signing
of the attached and following copy of said Resolution for all purposes.
SIGNED THIS NOVEMBER 11, 2019.
Janice Ellis, City Clerk Steven J. Clifford, M.D., Mayor
RESOLUTION NO.
A RESOLUTION DIRECTING NEWSPAPER PUBLICATION AND WEBSITE
POSTING OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
OBLIGATION; AND RESOLVING OTHER MATTERS RELATING TO THE
SUBJECT
THE STATE OF TEXAS
COUNTY OF LAMAR
CITY OF PARIS
WHEREAS, the City Council of the City of Paris, Texas (the "City"), deems it advisable
to give notice of intention to issue certificates of obligation of the City (the "Certificates of
Obligation"), as hereinafter provided; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Resolution was passed was open to the public and public notice of the time, place and purpose of
said meeting was given, all as required by Chapter 551, Texas Government Code;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PARIS, TEXAS:
Section 1. Attached hereto and marked Exhibit A is the form of Notice of Intention to
Issue Certificates of Obligation of the City (the "Notice"), the form and substance of which are
hereby passed and approved.
Section 2. The City Clerk shall cause the Notice, in substantially the form attached
hereto, to be published in a newspaper of general circulation in the City, and published in the
City, once a week for two consecutive weeks, the date of the first publication thereof to be before
the 45th day before the date tentatively set for the passage of the ordinance authorizing the
issuance of the Certificates of Obligation.
Section 3. The City Clerk shall cause the Notice, in substantially the form attached
hereto, to be posted continuously on the City's Internet website for at least 45 days before the
date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of
Obligation.
Section 4. This Resolution is intended to satisfy the official intent requirements set forth
in section 1.150-2 of the Treasury Regulations.
Section 5. This Resolution shall be effective immediately upon adoption.
PASSED AND ADOPTED this 11' day of November, 2019.
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
OF THE CITY OF PARIS, TEXAS
NOTICE IS HEREBY GIVEN that the City Council of the City of Paris, Texas (the
"City"), at its meeting to commence at 5:30 p.m. on January 13, 2020, at City Hall Council
Chambers, 135 SE 1st Street, Paris, Texas, tentatively proposes to adopt one or more ordinances
authorizing the issuance of certificates of obligation, in one or more series, in an amount not to
exceed $1,500,000 for the purpose of paying all or a portion of the City's contractual obligations
incurred in connection with (i) the renovation, repair and other improvement of the City's Love
Civic Center and (ii) paying legal, fiscal and engineering fees in connection with such projects.
The estimated interest rate for the certificates is 2.75% per annum, the maximum maturity date
for the certificates is June 15, 2030, and the estimated combined principal and interest required
to pay the certificates to be authorized on time and in full is $1,755,292. The City currently has
outstanding debt obligations equal to $53,915,000 in principal amount and $70,284,492 in
combined principal and interest required to pay such outstanding debt obligations on time and in
full. The City proposes to provide for the payment of such certificates of obligation from the
levy and collection of ad valorem taxes in the City as provided by law and from a pledge of
surplus revenues of the City's waterworks and sewer system (the "System") that remain after
payment of all operation and maintenance expenses thereof, and after all debt service, reserve
and other requirements in connection with all revenue bonds or other obligations (now or
hereafter outstanding) of the City have been met, to the extent that such obligations are payable
from all or any part of the net revenues of the System. The certificates of obligation are to be
issued, and this notice is given, under and pursuant to the provisions of V.T.C.A., Local
Government Code, Subchapter C of Chapter 271,
CITY OF PARIS, TEXAS