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Submittal Date: <br />12/4/12 <br />Council Date: <br />12/10/12 <br />CITY COUNCIL AGENDA ITEM BRIEFING SHEET <br />Originating Department: I Ptesented By: <br />City Manager � John Godwin <br />Agenda Item No.: <br />17. <br />RECOMMENDED MOTION: <br />Approve a resolution directing the City Clerk to publish notice of intent to issue Combination Tax and <br />Surplus Revenue Certificates of Obligation in the maximum amount of $2,900,000 for the purpose of <br />funding costs of water system improvements. <br />POLICY ISSUE�S�: <br />Publication <br />BACKGROUND: <br />• Pre-application for low interest loan submitted in spring 2012. <br />• City council approved contracts with Hayter Engineering (application prep and engineering), South-west <br />Securities (bond advisors), and McCall Parkhurst (bond counsel) on May 14, 2012. <br />• City qualifies for 15% loan forgiveness. <br />� Council approved submission of loan application on May 31. <br />• Texas Water Development Board approved loan in late September 2012. <br />• Negotiated sale of certificates of obligation is required as preferred funding mechanism by TWDB to ensure <br />low interest rate and to offer loan forgiveness. <br />• Certificate of obligation sale must be noticed in newspaper. <br />• Council tabled notice on November 26. <br />• Loan program participation would save $1,359,330 over 20 years, versus GO or traditional CO sale. <br />• Loan program participation would save $211,917 over paying cash. <br />• Sale of COs is a very common, open, and public action taken by city councils. <br />• No duplication of engineering work between Hayter and KSA. <br />• 15 water line replacement projects will be part of 10-year CIP regardless of type of financing. <br />•$3.4 million can be in addition to or a part of $50 million projected CIP cost. <br />BOARD�COMMISSION RECOMMENDATION: <br />EXHIBITS: <br />Resolution, Combination Tax & Revenue Certificates of Obligation <br />ACTION: <br />❑ Financial Report ❑ Minute Order <br />❑ Department Report � Resolution <br />❑ Presentation ❑ Ordinance <br />❑ Public Hearing ❑ Other <br />FISCAL NOTES: <br />BUDGET INFO: <br />Expense $ <br />Budgeted Amt. $ <br />YTD Actual $ <br />Acct. Name <br />Acct. Number <br />City of Paris Revised 6/20/12 <br />���� <br />