Attached is a parameters Ordinance prepared by the City's bond counsel, Norton Rose Fulbright US LLP, that authorizes the issuance and sale of "City of Allen, Texas, General Obligation Bonds, Series 2017."
The bonds are for the purpose of providing funds for construction, acquisition and improvements for projects that were authorized in the 2016 bond election. The dollar amount for the 2017 bond issue is currently established at $13,000,000.
The bonds are for the purpose of providing funds for construction,
acquisition and improvements for projects that were authorized in the
2016 bond election. The funding will support the following projects: Allen Public Library parking lot expansion, design for Central Fire Station Improvements, Firearms Training Center, and various street construction and reconstruction projects.
A parameter sale allows the City to take advantage of market conditions and pricing opportunities. The bonds are priced on a certain date and the pricing is approved by an appointed Pricing Officer of the City. The deal has to be structured within certain parameters indicated in the authorizing ordinance. Such parameters for the bonds include: the size to not to exceed $13,000,000, the true interest cost rate not to exceed 4.0%, and the maximum maturity date for the bonds not to exceed twenty years from the date of the Bonds as required by the Bond Election.
The attached Ordinance sets the form, details of, and authorizes the issuance and delivery of the bonds. The bonds are obligations of the City and are payable from the levy of ad valorem taxes upon property within the City of Allen. The negotiated sale will be finalized with the authorized Pricing Officer approving the transaction after it has been structured. The Pricing Officers listed in the ordinance are the City Manager and the Chief Financial Officer. The plan is to price the bonds in late-June. If the timetable does not change, the plan is to have the bond closing on July 26.
The City will apply to Moody's Investors Service, Inc., and Standard & Poor's Corporation (S&P) for ratings on the bond issue. Bond insurance will not be pursued since the City's underlying bond rating is AAA from S&P and Aaa from Moody's.
Due to the size of the issue, two underwriting firms are expected to be involved in the bond sale. Various documents such as the Bond Purchase Agreement, and Paying Agent/Registrar Agreement will be finalized and executed by the authorized Pricing Officer.