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, Tax Notes, Series 2020." The notes are for the purpose of providing funds for construction, facility maintenance and improvements for city-wide projects. The dollar amount for the 2020 notes issue is currently established at $3,500,000. The funding will support facility improvements and enhancement projects. Per our procurement procedures, all individual projects that exceed $100,000 will require City Council review and approval.

Below is the list of currently recommended projects:

A parameters sale allows the City to take advantage of market conditions and pricing opportunities. The notes 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 $3,500,000, the true interest cost rate not to exceed 3%, and the maximum maturity date for the bonds not to exceed seven years.

The attached Ordinance sets the form, details of, and authorizes the issuance and delivery of the notes. The notes 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 Mayor and the Chief Financial Officer. The plan is to receive bids in late June. If the timetable does not change, the plan is to have the notes close on July 29. Various documents such as the Bond Purchase Agreement, and Paying Agent/Registrar Agreement will be finalized and executed by the authorized Pricing Officer.

Depending upon the final interest rates, the debt payment associated with the issuance of $3,500,000 in new notes is expected to be increase in the average annual debt service amount of approximately $626,000 for the next six years. The debt issuance will be structured to mature in seven years. The debt payments will begin in fiscal year 2021.

Staff recommends that the City Council adopt the Ordinance authorizing the issuance of "City of Allen, Texas, Tax Notes, Series 2020"; establishing the parameters for the sale and issuance of such bonds; and delegating certain matters to authorized officials of the City.

I make a motion to adopt Ordinance No. ________ authorizing the issuance of "City of Allen, Texas, Tax Notes, Series 2020"; establishing the parameters for the sale and issuance of such notes; and delegating certain matters to authorized officials of the City.