Title
Consider adopting Ordinance No. 3287 authorizing the issuance of City of Farmers Branch, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014, in an aggregate principal amount of not to exceed $2,000,000 for joint public safety dispatch, communications and training facilities; awarding the sale of the Certificates, levying a tax in payment thereof and providing for the security for and payment of said Certificates; approving the official statement and a paying agent/registrar agreement; enacting other provisions relating thereto; declaring an effective date; and take appropriate action.
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BACKGROUND:
On April 1, 2014, the City Council approved Resolution No. 2014-028 authorizing the publication of Notice of Intention to Issue City of Farmers Branch, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014, in a principal amount not to exceed $2.0 million, for the purpose of paying contractual obligations to be incurred for the following purposes: a) acquisition, equipping or constructing of a joint public safety dispatch, communications and training facilities (the "Project"), and b) paying for professional services of attorneys, financial advisors and other professionals in connection with the Project and the issuance of the Certificates.
This notice was published in the Dallas Morning News in the manner required by law on June 6 and June 13, 2014, with a scheduled meeting date and time of July 15, 2014 at 6:30 p.m. All legal requirements necessary to issue these certificates have been met. The $2.0 million in ten-year maturity certificates will be sold on July 15, 2014, pending approval of this Ordinance. A final version of the ordinance, with interest rate pricing included, will be distributed prior to Council consideration of this agenda item. The ordinance pledges the full faith and credit of the City guaranteeing certificate repayment through the levy of a property tax, which is estimated to be 0.006 cents.
DISCUSSION:
Ordinance No. 3287 provides for the issuance and sale of the certificates authorized by Resolution No. 2014-028. The Certificates are being offered by the City concurrently with the City of Farmers Branch, Texas, General Obligation Bonds, Series 2014, under a common Official Statement. The Certificates and Bonds 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. 3287 providing for the issuance, sale, and delivery of Combination Tax and Revenue Certificates of Obligation, Series 2014, in the aggregate principal amount of approximately $2,000,000.
ACTIONS:
1) Motion to adopt Ordinance No. 3287 authorizing the issuance of City of Farmers Branch, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014, in an aggregate principal amount of not to exceed $2,000,000 for joint public safety dispatch, communications and training facilities; awarding the sale of the Certificates, levying a tax in payment thereof and providing for the security for and payment of said Certificates; approving the official statement and a paying agent/registrar agreement; enacting other provisions relating thereto; and, declaring an effective date.
2) Motion to deny Ordinance No. 3287 authorizing the issuance of City of Farmers Branch, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014, in an aggregate principal amount of not to exceed $2,000,000 for joint public safety dispatch, communications and training facilities; awarding the sale of the Certificates, levying a tax in payment thereof and providing for the security for and payment of said Certificates; approving the official statement and a paying agent/registrar agreement; enacting other provisions relating thereto; and, declaring an effective date.
3) Motion to modify Ordinance No. 3287 to meet the needs of the Council.
4) Motion to table the issue for further study or take no action.
ATTACHMENTS:
1. Ordinance No. 3287 (Draft version - Final to be distributed at City Council meeting)
2. Preliminary Official Statement
3. Notice of Sale