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 2018; 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 (Director of Finance)
Background:
Approval of this ordinance will authorize the issuance of bonds (Certificates of Obligation) to provide funding for projects (see Attachment) included in the proposed FY2019 Capital Budget and the proposed FY2019-2023 Capital Improvement Plan. This sale will be conducted as a competitive sale with staff receiving pricing on October 9th and presenting that final best pricing to the City Council at the meeting. State law requires one reading only.
The Preliminary Official Statement (POS) (draft is attached hereto) 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 certificate ordinance (draft is attached hereto) will approve a sale that will include:
1. A sale of approximately $11.55 million in principal with proceeds producing a deposit to the capital projects funds of $11.54 million;
2. A total estimated interest cost of 3.431541% that includes the benefit of a bond premium of approximately $205,571;
3. A maximum maturity date of 20 years
On June 26 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 July 1st and July 8th. Due to the pledge of revenue not being stated in this Notice of Intent, the Attorney General required the City to republish the notice. The revised notice was pu...
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