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Consider adopting Ordinance No. 3288 providing for the issuance of City of Farmers Branch, Texas, General Obligation Bonds, Series 2014, in an aggregate principal amount not to exceed $14,500,000 for street projects pursuant to the bond election; awarding the sale of said bonds; levying a tax in payment thereof; approving the official statement and paying agent/registrar agreement; enacting other provisions relating thereto; declaring an effective date; and take appropriate action.
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BACKGROUND:
On February 18, 2014, the City Council adopted Ordinance No. 3263 calling for a bond election in the amount of $23,500,000 to be held within the City on May 10, 2014. An election was held on May 10, 2014 authorizing the City Council of the City of Farmers Branch, Texas to issue general obligation bonds in the aggregate principal amount of $23,500,000. The bonds will be used to provide funds for permanent public improvements and to pay the costs associated with the issuance of the bonds.
DISCUSSION:
Ordinance No. 3288 provides for the issuance and sale of approximately $14,500,000 voter authorized bonds. The remaining bonds, totaling approximately $9,000,000, are anticipated to be issued within approximately four to five years and the combined maturity is expected to be twenty years. The annual debt service associated with this issuance is estimated at $1,658,100 and will increase the City's property tax rate by 0.045 cents.
In addition, an opportunity exists to provide for the combined sale and issuance of the voter authorized bonds and certificates of obligation for a combined dispatch center in order to realize interest rate and cost of issuance savings. To realize these savings, the Bonds are being offered by the City concurrently with the City of Farmers Branch, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014. The Bonds and the Certificates are separate and distinct securities offerings being issued and sold independently except for the common Official Statement.
This agenda item supports Core Value No. 7 which provides for efficient and fiscally sound government through conservative budgeting, spending and resource management.
RECOMMENDATION:
City Administration recommends adopting Ordinance No. 3288 providing for the issuance and sale of General Obligation Bonds, Series 2014, in an aggregate principal amount of not to exceed $14,500,000 for street projects pursuant to the bond election.
ACTIONS:
1) Motion to adopt Ordinance No. 3288 providing for the issuance of City of Farmers Branch, Texas, General Obligation Bonds, Series 2014, in an aggregate principal amount not to exceed $14,500,000 for street projects pursuant to the bond election; awarding the sale of said bonds; levying a tax in payment thereof; approving the official statement and paying agent/registrar agreement; enacting other provisions relating thereto; and declaring an effective date.
2) Motion to deny Ordinance No. 3288 providing for the issuance of City of Farmers Branch, Texas, General Obligation Bonds, Series 2014, in an aggregate principal amount of not to exceed $14,500,000 for street projects pursuant to the bond election; awarding the sale of said bonds; levying a tax in payment thereof; approving the official statement and paying agent/registrar agreement; enacting other provisions relating thereto; and declaring an effective date.
3) Motion to modify Ordinance No. 3288 to meet the needs of the Council.
4) Motion to table the issue for further study or take no action.
ATTACHMENTS:
1. Ordinance No. 3288 (Draft Version - Final ordinance copy will be distributed at meeting)
2. Preliminary Official Statement (see Ordinance 3287 for attachment)
3. Notice of Sale