Title
A Resolution by the City Council of the City of Farmers Branch, Texas, authorizing publication of notice of intention to issue combination tax and revenue certificates of obligation: approving the preparation of a preliminary official statement and notice of sale; providing for other matters incidental thereto; and providing for an effective date.
Body
BACKGROUND:
City Administration has previously held a number of discussions with the City Council regarding the desire to finance costs associated with land acquisition, design, construction, and equipping public safety communication dispatch facility, North Texas Emergency Communication Center (NTECC), for $5M, and acquiring vehicles and equipment for public safety for $5M. We are combining the NTECC and fire fleet Certificates of Obligation (CO) issuance in order to save on the costs of issuance. Resolution 2024-119 is on the agenda to authorize the City to reimburse itself for these costs once the certificates are issued.
The Certificates are expected to be issued with a maturity not exceeding 25 years. The maximum of 25 years relates to the useful life of NTECC buildings. The maturity of the Fire fleet will be for a shorter period. The debt tax rate is not anticipated to increase from this issuance. The City is proposing an overall tax rate decrease of at least 3 cents for fiscal year 2025, which will come from the Maintenance & Operation (M&O) tax rate.
DISCUSSION:
This resolution gives notice of the City's intent to issue certificates of obligation, in an amount not to exceed $10.0 million, for the purpose of paying contractual obligations to be incurred for the following purposes: (i) designing, constructing, developing, and equipping public safety facilities, including a public safety communication facility and dispatch center, and the acquisition of land therefor; (ii) acquiring vehicles and equipment for public safety, including fire, police and emergency services (items (i) and (ii), coll...
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