13-BOND ELECTIONItem No. 13
memo�andum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: BOND ELECTION
DATE: February 5, 2013
BACKGROLTND: Concurrent with discussions and work on developing a ten-year capital
improvements program (CIP), we have discussed the need to conduct a bond election in 2013 to
approve up to $50 million in general obligation bonds. Such elections may occur on one of two
state-mandated uniform election dates — Saturday, May 11 or Tuesday, November 5. At the
January 28 council meeting we discussed three separate bond propositions, for streets, drainage,
and utilities system improvements. The council instructed the staff to proceed with preparing
final proposition and bond language for a May 11 election, with the goal to formally call the
special election on February 11.
STATUS OF ISSUE: Since the January meeting, we have discussed the desirability of making
the bond election as easy to understand as possible, while also ensuring there is no need to
increase any rates, fees, or taxes to fund the new debt. As a result, we are recommending only
one bond proposition, which would allocate funds to replace water and sewer lines, and to repair
and replace roads damaged by that construction. Second, we are proposing reducing the amount
of the requested bonds from $50 million down to $45 million. Based on retirement of old bonds
in 2011 and 2012, plus bonds that will be retired in 2014 and 2020, this is the amount of bonds
that can be sold with no rate increases, now or in the future. Finally, we have tried to make the
ballot language a bit simpler by not only reducing the number of propositions, but by changing
the language to describe water and sewer lines instead of "waterworks" improvements, which
can include a lot of different things we are not interested in. We also added language to the
election resolution to indicate no need or desire to increase any fees or rates.
BUDGET: Repayment of the bonds will depend on when they are actually sold. We would
likely sell approximately half in 2013 and the other half three to four years later.
RECOMMENDATION: Call special election for May 11, and authorize submittal of all
appropriate ballot language.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS, CALLING A BOND ELECTION IN
THE CITY OF PARIS, TEXAS; ESTABLISHING THE
DATE OF THE ELECTION; PROVIDING FOR EARLY
VOTING; DESIGNATING POLLING PLACES;
APPOINTING ELECTION OFFICIALS; PROVIDING FOR
NOTICE OF THE ELECTION; AUTHORIZING AN
AGREEMENT WITH THE LAMAR COUNTY ELECTIONS
ADMINISTRATOR FOR ELECTION SERVICES;
APPOINTING AN EARLY VOTING BALLOT BOARD;
FINDING AND DETERMINING THAT THE MEETING AT
WHICH THIS RESOLUTION WAS PASSED COMPLIED
WITH THE TEXAS OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, this City Council of the City of Paris, Texas (the "City") finds and
determines that it is necessary and advisable to call and hold an election within the City on the
proposition hereinafter set forth for the purpose of seeking voter approval to issue bonds; and
WHEREAS, the bonds to be submitted to the voters at said election will fund
improvements for the City's water and sewer system (the "System"), as hereinafter set forth; and
WHEREAS, City bonds issued for System improvements have paid off in 2012 and
additional System debt is scheduled to pay off in 2014 and 2020, thereby creating capacity in the
System rate structure for additional debt for System improvements; and
WHEREAS, as permitted by State law, and provided current circumstances and
expectations regarding the finances of the System are not materially different in the future, the
City Council expects to pay bonds approved at the election with revenues of the System, instead
of levying taxes, and, further, given such circumstances and expectations, the City Council
anticipates that the bonds hereby submitted to the voters may be paid without an increase in
System rates, although costs of operating the System and other factors could require periodic
increases in rates; and
WHEREAS, the election shall be administered by the Lamar County Elections
Administrator in accordance with the provisions of the Texas Election Code (the "Code"), the
Charter of the City of Paris, the Election Contract with the County of Lamar, and as provided in
the Charter of the City of Paris and the laws of the State of Texas wherein they do not conflict
with said Order; and
WHEREAS, the City accepts Lamar County Election Administration's use of the
Election Systems & Software direct recording electronic voting systems, which have been
certified by the Secretary of State in accordance with the Texas Election Code and approved by
the United States Department of Justice.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS:
Section 1. The findings set out in the preamble to this Resolution are hereby in all things
approved and adopted.
Section 2. An election be called for and held on the second Saturday in May, 2013, the
same being May 11, 2013, between the hours of 7:00 a.m. and 7:00 p.m., at which election the
following proposition shall be submitted in accordance with law:
PROPOSITION
Shall the City Council of the City of Paris be authorized to issue the bonds of the
City, in one or more series or issues, in the aggregate principal amount of
$45,000,000, with the bonds of each such series or issue, respectively, to mature
serially within not to exceed 40 years from their date, and to be sold at such prices
and bear interest at such rates as shall be determined within the discretion of the
City Council, for the purpose of constructing and acquiring improvements and
equipping the City's waterworks and sewer system, to-wit: for replacing and
extending water distribution lines and sewer collection lines and constructing
repairs to streets and drainage infrastructure necessitated by such water and sewer
line construction, and shall the City Council be authorized to levy and cause to be
assessed and collected annual ad valorem taxes in an amount sufficient to pay the
annual interest on the bonds and provide a sinking fund to pay the bonds at
maturity?
Section 3. The official ballots for the election shall be prepared in accordance with the
Code so as to permit the electars to vote "FOR" or "AGAINST" the aforesaid PROPOSITION,
with the ballots to contain such provisions, markings and language as required by law, and with
such PROPOSITIONS to be expressed substantially as follows:
PROPOSITION
)
FOR ) THE ISSUANCE OF $45,000,000 TAX BONDS FOR
) CONSTRUCTION OF WATER AND SEWER LINES
AGAINST ) AND REPAIRS TO STREETS AND DRAINAGE
) INFRASTRUCTURE NECESSITATED BY SUCH
) CONSTRUCTION.
)
Section 4. All persons legally qualified to vote according to the laws of the State of
Texas and the Charter of the City of Paris, Texas, shall be entitled to vote in the election.
Section 5. The election shall be held and conducted and the returns thereof made in
accordance with the Texas Election Code, the Charter of the City of Paris, Texas, and all other
applicable statutes of the State of Texas and Ordinances of the City of Paris, Texas. The election
materials enumerated in Sections 272.001, et seq., Texas Election Code, shall be printed and
furnished in both English and Spanish for use at each polling place on election day and for early
voting.
Section 6. Voting in the election on May 11, 2013 shall be conducted at the polling
places for the City Council districts as follows:
City Council District Places: Voting Location:
Council Places 3, 4, 5, 6 and 7 Lamar County Courthouse Annex
Old County Courtroom
231 Lamar Avenue
Paris, Texas
Council Places 1 and 2 Red River Valley Fairgrounds
570 E. Center Street
Paris, Texas
Section 7. The following persons are hereby appointed and named as Election Judges
and Alternate Judges for the election:
Voting Location: Judge and Alternate Judge:
Lamar County Courthouse Annex
Old County Courtroom Bob Burke, Election Judge
231 Lamar Avenue Jack Stubblefield, Alternate Judge
Paris, Texas
Red River Valley Fairgrounds Thelma Dangerfield, Election Judge
570 E. Center Street Paula Henderson, Alternate Judge
Paris, Texas
Section 8. Early voting shall be conducted by personal appearance and by mail at:
Location to Vote In Person Address to Request Ballot by Mail
Lamar County Courthouse Annex Mr. Russell Towers
Old County Courtroom Lamar County Elections Administrator
231 Lamar Avenue 231 Lamar Avenue
Paris, Texas Paris, Texas 75460
The early voting period for the election is Apri129, 2013 through May 7, 2013, except no
early voting will be held on Saturdays, Sundays and legal state holidays during that period. On
Apri129, 2013 and April 30, 2013, the hours designated for early voting by personal appearance
shall be from 8 a.m. to 8 p.m. On May 1, 2, 3, 6 and 7, the hours designated for early voting by
personal appearance shall be from 8 a.m. to 5 p.m. The Early Voting Clerk shall keep said early
voting place open during such hours for early voting by personal appearance. The Early Voting
Clerk for the election shall be Russell Towers.
Section 9. Notice of the election shall be given for the time and in the manner provided
and prescribed by the Texas Election Code and in accordance with the Charter and Ordinances of
the City. A notice of the election shall be prepared, and among other information that may be
included, said notice shall include the ballot provision to be submitted to the voters, and shall
contain a listing of the location of each election day and early voting polling place for the
election, the City Districts served by each polling place and the dates and hours that election day
and early voting will be conducted. Notice of the election shall be given by posting the notice in
both English and Spanish on the bulletin board in the City Hall of the City that is used for
posting notices of ineetings of the City Council, and at three (3) other places in said City not later
than the 21 st day before election day; and such notice shall be published in both English and
Spanish on the same day in each of two (2) successive weeks in a newspaper of general
circulation in said City, the date of the first publication to be not more than thirty (30) or less
than fourteen (14) days prior to the date set for the election.
Section 10. Russell Towers is hereby appointed to serve on the date of the election as the
presiding judge of a three (3) member Early Voting Ballot Board, the other two members of
which are to be appointed by said judge in accordance with the provisions of Chapter 87 of the
Texas Election Code, as amended.
Section 11. The City Manager or the Mayor is hereby authorized and directed to execute
an agreement with the Lamar County Elections Administrator, as approved by the City Attorney,
to allow the Lamar County Elections Administrator to provide services in regards to the May 11,
2013 election.
Section 12. In all respects, the election shall be conducted in accordance with the Code.
Pursuant to the federal Help America Vote Act ("HAVA") and the Code, at each polling place
there shall be at least one voting system that is equipped for disabled individuals, and each such
voting system shall be a system that has been certified by the Texas Secretary of State as
compliant with HAVA and the Code.
Section 13. The meeting at which this Resolution was passed was conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code Chapter 551.
Section 14. This Resolution shall be effective immediately from and after its passage.
PASSED AND APPROVED this l lth day of February, 2013.
A.J. Hashmi, M.D.
Mayor
ATTEST:
Janice Ellis
City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar
City Attorney