07.15.2013 MINUTESMINUTES OF THE SPECIAL CITY COUNCIL MEETING
OF THE CITY OF PARIS, TEXAS
July 15, 2013
The City Council of the City of Paris met for a special session at 5:30 p.m. on Monday,
July 15, 2013, at the City Council Chamber, 107 E. Kaufman, Paris, Texas.
Present: Mayor: A.J. Hashmi
Council Members: Aaron Jenkins; Billie Lancaster; John Wright;
Matt Frierson; and Cleonne Drake
City Staff. Gene Anderson, Interim City Manager; Kent
McIlyar, City Attorney; Janice Ellis, City Clerk;
and Shawn Napier, City Engineer
Absent: Council Member: Council Member Grossnickle
Opening Agenda
Call meeting to order.
Mayor Hashmi called the meeting to order at 5:30 p.m.
2. Consider and take action on ORDINANCE NO. 2013 -024: AN ORDINANCE
AUTHORIZING THE ISSUANCE OF THE CITY'S GENERAL OBLIGATION
BONDS; APPROVING THE USE OF A PAYING AGENT /REGISTRAR
AGREEMENT; ENGAGING BOND COUNSEL AND FINANCIAL ADVISOR;
PROVIDING FOR THE PLEDGE OF FUNDS FOR THE PAYMENT OF THE
BONDS; AND ENACTING OTHER PROVISIONS RELATING OT THE ISSUANCE
AND SALE OF THE BONDS.
Interim City Manager Gene Anderson explained that approval of this ordinance was
formalizing the selling of bonds as discussed at an earlier Council meeting, when staff was
directed to proceed forward. Mark McLiney, Senior Vice President for Southwest Securities told
City Council they saved money by enabling the bonds to be sold, because interest rates were on
the rise and in another week there would be additional competition. Mr. McLiney said a few
weeks could make a big difference citing if the City had sold the bonds two or three weeks
earlier, there would have been a savings of $200,000 to $300,000. Council Member Frierson
asked about the timeline between coordinating selling of the bonds and seeing a plan of work.
Mr. McLiney said that was a question for the engineering side. Council Member Drake inquired
of any consequences if the City did not spend the $35 million in three years. Mr. McLiney said
that the City would be subject to arbitrage rebate and that would mean the City was earning more
money and that was a good problem. Mayor Hashmi inquired if the City could pay off the bond
early and Mr. McLiney said the earliest the City could pay it off was December 2023. Mr.
McLiney also said other bonds callable before that date could be paid off early. Mr. McLiney
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July 15, 2013
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commended Mr. Anderson on the City's management of finances and financial policy of keeping
five months' operating reserve in the general fund and four months' operating reserve in the
water and sewer fund. Mr. McLiney said this type of management meant that bond insurance
was not required, which resulted in a savings of $79,383.00 to the City. He said the City
received a Double AA rating from Moody and A+ from Standard and Poors.
A Motion to authorize the issuance of the City's General Obligation Bonds was made by
Mayor Hashmi and seconded by Council Member Wright. Motion carried, 5 ayes — 0 nays.
Council Member Jenkins arrived to the meeting at 5:55 p.m.
Mayor Hashmi recessed the City Council at 5:55 p.m. and reconvened City Council into
open session at 6:06 p.m.
3. Receive presentation from the Capital Improvements Citizen Committee.
Mr. Anderson said there was confusion about this item and said the Committee needed a
workshop with the Council prior to making a recommendation or giving a presentation. He
asked Council to pass over this item and schedule a workshop. It was a consensus of City
Council to schedule a workshop for Monday, July 22nd at 4:00 p.m.
4. Discussion and possibly act on a Resolution approving Guidelines and Criteria for a
Residential Tax Abatement Program.
City Attorney Kent McIlyar explained that Council would need to make decisions
regarding the reinvestment zone, minimum investment, term of tax abatement, percentage of
abatement and whether or not to include subdivision improvements. Mr. McIlyar further
explained that once those decisions were made, they would need to have a public hearing at a
future Council meeting with regard to the reinvestment zone.
Following a lengthy discussion, it was a consensus of City Council that the abatement
would be 100% for the first and second years; 80% the third year; 60% the fourth year; 40% the
fifth year and 0 the sixth year. Council also decided that a minimum investment of 20% of the
appraised value would be required to be eligible for the abatement and that the term of the
abatement would be for five years. City Council decided to include single - family homes and not
include developers for subdivisions at that time. Mayor Hashmi said he wanted all of Paris to
grow, but would like to encourage grow in West Paris and other blighted areas. After review of
the map, City Council decided to include all of District I west of NE 201h Street; all of District 2;
all of District 3 inside the loop, plus Jefferson Heights outside the southeast loop; all of District 4
west of Northeast 201h inside the loop, plus south of the U.S. 82 outside the west loop; and all of
District 5 west of Southeast 20th Street. It was decided that staff would bring a formal map to the
Council meeting on July 22 for approval.
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July 15, 2013
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5. Adjournment.
There being no further business, a Motion to adjourn was made by Council Member
Frierson and seconded by Council Member Drake. Motion carried, 6 ayes — 0 nays. The meeting
was adjourned at 5:57 p.m.
' u4D
ICE ELLIS, CITY CLERK