Title
Consider and take action on an ordinance authorizing the issuance of City of League City, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2017; and levying an ad valorem tax; pledging certain net revenues; approving an official statement, authorizing the execution of a transfer and paying agency agreement; and other matters in connection therewith (Assistant City Manager)
State law requires one reading only.
Background:
The ordinance authorizes the issuance of bonds (Certificates of Obligation) to provide funding for projects (see Attachment A) included in the proposed FY2017 Capital Budget and the proposed FY2017-2022 Capital Improvement Plan. This sale will be conducted as a competitive sale with staff receiving pricing on June 13th and presenting that final best pricing to the City Council at the meeting.
The Preliminary Official Statement (POS) (see Attachment B) is the offering document used to present the City's sale to the marketplace. The POS contains financial, organizational, programmatic and legal information about the City of League City, including its planned use of the bonds proceeds and the initial proposed payment schedule for the bonds.
The bond ordinance (draft is attached hereto as Attachment C) will approve a sale that will include:
1. A sale of approximately $17.05 million in principal to produce a deposit to the capital projects funds of $ 18 million;
2. A total estimated interest cost of 3.3% that includes the benefit of a bond premium of approximately $1.1 million;
3. A maximum maturity date of 20 years
On May April 25th the City Council held a public hearing on this issue and then authorized publication of the notice of intent to sell. The notice was published in the Galveston County Daily News on May 3rd and May 10th. In addition information was published in "City Matters", leaguecity.com, the City Manager's Update, Facebook, Twitter, Instagram and Channel 16. A second public hearing is scheduled for June 13.
The following firms are providing professional services for the sale;
1. The City's financial advisors are First Southwest Company
2. Norton Rose Fulbright is legal counsel
Attachments
1. Data Sheet
2. Project List
3. Preliminary Official Statement
4. Preliminary Notice of Sale
5. Draft Bond Ordinance
6. Draft Paying Agency Agreement
CONTRACT ORIGINATION: N/A
FUNDING
{X} NOT APPLICABLE - all isssuance costs to be paid from bond proceeds and TIRZ #4
{ } Funds are available from Account #___________________________
{ } Requires Budget Amendment to transfer from Account #____________to Account # ___________________