Title
Consider adopting Ordinance No. 3888 authorizing the issuance of General Obligation Bonds, Series 2024, in an aggregate principal amount not to exceed $2,500,000; levying a tax in payment thereof; authorizing the execution and delivery of a bond purchase agreement, and paying agent/registrar agreement and a bond counsel engagement letter; and take appropriate action.
Body
REQUESTOR:
Finance, Fleet, and Facilities Department
BACKGROUND:
On October 10, 2023, the City Council adopted Ordinance No. 3849, calling for a bond election to be held within the City on May 4, 2024. An election was held on May 4, 2024, authorizing the City Council to issue general obligation (GO) bonds in the aggregate principal amount of $8,000,000. The bonds will be used to provide funds for the Economic Development fund, the Branch Connection remodel, water infrastructure public improvements, and costs associated with the issuance of the bonds.
DISCUSSION:
Ordinance No. 3888 provides for the issuance and sale of approximately $2,500,000 voter authorized bonds for the Economic Development fund ($500,000) and Branch Connection remodel ($2,000,000). The remaining bonds, totaling approximately $5,500,000 for water infrastructure improvements, are anticipated to be issued within approximately one to four years and the combined maturity is expected to be twenty-five years.
In addition, an opportunity exists to provide for the combined sale and issuance of the voter authorized GO Bonds and certificates of obligation (CO) for a 911 dispatch center and public safety equipment to realize interest rate and cost of issuance savings. To achieve these savings, the GO Bonds are being offered by the City concurrently with the City of Farmers Branch, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2024. The Bonds and the Certificates are separate and distinct securities offerings issued and sold independently except for the common Official Statement.
A final version of the Ordinance, with interest rate pricing included, will be distributed prior to City Council consideration of this agenda item.
FISCAL IMPACT:
Budgeted Financial Impact -See Preliminary Official Statement
DISTRICT:
All districts.
POSSIBLE COUNCIL ACTION:
1. I move to approve Ordinance No. 3888 providing for the issuance of City of Farmers Branch, Texas, General Obligation Bonds, Series 2024, in an aggregate principal amount not to exceed $2,500,000; levying a tax in payment thereof; authorizing the execution and delivery of a bond purchase agreement, a paying agent/registrar agreement and a bond counsel engagement letter; approving the Official Statement; enacting other provisions relating thereto; and declaring an effective date, as presented.
2. I move to deny Ordinance No. 3888 providing for the issuance of City of Farmers Branch, Texas, General Obligation Bonds, Series 2024, in an aggregate principal amount not to exceed $2,500,000; levying a tax in payment thereof; authorizing the execution and delivery of a bond purchase agreement, a paying agent/registrar agreement and a bond counsel engagement letter; approving the Official Statement; enacting other provisions relating thereto; and declaring an effective date.
3. I move to approve Ordinance 3888, with modifications.
4. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Ordinance No. 3888 (Draft Version - Final ordinance copy will be distributed at meeting)
2. Preliminary Official Statement
3. Presentation