15 - NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATIONItem No. 15
memorandum
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION
DATE: July 30, 2015
BACKGROUND: The possibility of issuing $2,500,000 worth of tax and revenue certificates of
obligation was discussed at the July 13, 2015 and July 27, 2015 Council meetings. The purpose
of the certificates has been proposed to be $2,000,000 for drainage projects and $500,000 for
park improvements. Due to decreased debt payments on the City's GO Refunding Bonds Series
2012, this new debt issue would not cause the property tax rate to increase.
STATUS OF ISSUE: This issue is on the agenda for discussion and possible action. If the
Council wishes to go forward and issue this debt, the first step would be to pass a resolution
directing the publication of a notice of intention to issue these certificates of obligation twice in
the local newspaper. The staff and financial advisors would then prepare the official financing
statement and acquire a bond rating from Moody's. Bids would then be taken from potential
buyers to purchase the certificates. Finally, the Council would adopt an ordinance on September
14, 2015 that authorizes and sells the certificates.
BUDGET: The certificates would be repaid by levying a property tax sufficient to make the
$186,500 average annual debt payment.
RECOMMENDATION: Motion to approve the resolution directing publication of notice of
intention to issue combination tax and revenue certificates of obligation.
RECCOMENDED PROJECTS
PARKS:
Wade Park $250,000 Playground, water feature
Leon Williams Park $250,000 Playground, water feature, perimeter fencing
DRAINAGE:
Pine Bluff to Clement $514,000
J'woods, Lamar to Hubbard $319,000
2nd SW to Washington $420,000
5th & Austin to Jackson $750,000
CERTIFICATE FOR RESOLUTION
THE STATE OF TEXAS §
COUNTY OF LAMAR §
CITY OF PARIS §
We, the undersigned officers of the City of Paris (the "City "), hereby certify as follows:
1. The City Council of the City (the "City Council ") convened in REGULAR MEETING
ON THE 10TH DAY OF AUGUST, 2015, at the designated meeting place, and the roll was
called of the duly constituted officers and members of the City Council, to wit:
Dr. A.J. Hashmi, Mayor
Billie Sue Lancaster, Mayor Pro -tern
Dr. Steve Clifford
Matt Frierson
Aaron Jenkins
Edwin Pickle
Benny Plata
Janice Ellis, City Clerk
and all of said persons were present, except the following absentees: ,
thus constituting a quorum. Whereupon, among other business, the following was transacted at
said Meeting: a written
RESOLUTION NO. DIRECTING PUBLICATION OF NOTICE OF
INTENTION TO ISSUE COMBINATION TAX AND LIMITED PLEDGE
SURPLUS REVENUE CERTIFICATES OF OBLIGATION
was duly introduced for the consideration of the City Council. It was then duly moved and
seconded that the Resolution be adopted and, after due discussion, said motion, carrying with it
the adoption of the Resolution, prevailed and carried by the following vote:
AYES: All members of the City Council shown present above voted "Aye," except as
shown below:
NOES:
ABSTAIN:
2. That 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
the Resolution has been duly recorded in the City Council's minutes of the Meeting; that the
above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes
of the Meeting pertaining to the adoption of the Resolution; that the persons named in the
above and foregoing paragraph are the duly chosen, qualified and acting officers and members
of the City Council as indicated therein; that each of the officers and members of the City
Council was duly and sufficiently notified officially and personally, in advance, of the time,
place and purpose of the aforesaid Meeting, and that the Resolution would be introduced and
considered for adoption at the Meeting, and each of the officers and members consented, in
advance, to the holding of the Meeting for such purpose, and that the Meeting was open to the
public and public notice of the time, place and purpose of the meeting was given, all as required
by Chapter 551, Texas Government Code.
3. That the Mayor of the City (or the Mayor Pro -tem in the absence of the Mayor) has
approved and hereby approves the aforesaid Resolution; and that the Mayor (or the Mayor Pro -
tem in the absence of 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 the
Resolution for all purposes.
SIGNED AND SEALED the 10th day of August, 2015.
Janice Ellis, City Clerk
(SEAL)
A.J. Hashmi, M.D., Mayor
RESOLUTION NO.
DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND LIMITED PLEDGE SURPLUS REVENUE
CERTIFICATES OF OBLIGATION
THE STATE OF TEXAS §
COUNTY OF LAMAR §
CITY OF PARIS §
WHEREAS, this City Council deems it advisable to give notice of intention to issue
certificates of obligation of the City of Paris, Texas, 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.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS:
1. Attached hereto is a form of the Notice of Intention to issue Certificates of
Obligation, the form and substance of which is hereby adopted and approved.
2. The City Clerk shall cause said notice to be published in substantially the form
attached hereto, in a newspaper of general circulation in the City, and published in the City, on
the same day in each of two consecutive weeks, the date of the first publication thereof to be at
least 30 days prior to the time set for the first reading of the ordinance authorizing the issuance of
such certificates of obligation as shown in said notice.
3. This Resolution shall become effective immediately upon adoption.
PASSED AND ADOPTED this 10t' day of August, 2015.
A.J. Hashmi, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
CITY OF PARIS, TEXAS
NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND LIMITED PLEDGE
SURPLUS REVENUE CERTIFICATES OF OBLIGATION
The City of Paris, Texas does hereby give notice of intention to issue one or more series of
Combination Tax and Limited Pledge Surplus Revenue Certificates of Obligation, in the
maximum principal amount not to exceed $2,500,000, for paying all or a portion of the City's
contractual obligations incurred in connection with (1) constructing, acquiring and installing
storm water drainage and flood control improvements, including dredging, channel
improvements and related infrastructure and utility relocation, and the acquisition of land and
interests in land necessary for said improvements, (2) designing, constructing, improving and
equipping parks, trails and recreational facilities, and the acquisition of park equipment and land
and interests in land for such purposes and (3) paying legal, regulatory, fiscal, engineering and
architectural costs in connection with such projects. The City proposes to adopt an ordinance
that will provide for the Certificates of Obligation to be secured by a pledge of funds received
from the levy and collection of ad valorem taxes in the City, as provided by law, and from a
limited pledge (not to exceed $1,000) of the surplus net revenues of the City's water 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 City
Council intends to consider for passage at a meeting to be held at 5:30 P.M. on September 14,
2015, at the Paris City Council Chamber located at 107 East Kaufman Street in Paris, Texas, an
ordinance authorizing the issuance of Combination Tax and Revenue Certificates of Obligation.
CITY OF PARIS, TEXAS
By:
A.J. Hashmi, M.D., Mayor