Item Coversheet

CITY COUNCIL AGENDA COMMUNICATION
AGENDA DATE:February 23, 2021
SUBJECT:

Adopt a Resolution Approving and Authorizing Publication and Posting of Notice of Intention to Issue Certificates of Obligation and Declaring Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Construction of the Stephen G. Terrell Recreation Center and Public Infrastructure Improvements Related to Projects at Alma and State Highway 121.

STAFF RESOURCE:

Jennifer Fung, Interim Chief Financial Officer

Chris Landrum, Assistant Chief Financial Officer

ACTION PROPOSED:

Adopt a Resolution Approving and Authorizing Publication and Posting of Notice of Intention to Issue Certificates of Obligation and Declaring Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Construction of the Stephen G. Terrell Recreation Center and Public Infrastructure Improvements Related to Projects at Alma and State Highway 121.




BACKGROUND

Attached is a Resolution prepared by the City's bond counsel, Norton Rose Fulbright US, LLP., that authorizes the publication and posting of notice of intention to issue certificates of obligation and declaring expectation to reimburse expenditures with proceeds of future debt (Certificates of Obligation, Series 2021).

 

The Allen City Council has determined that certificates of obligation should be issued for the purpose of paying contractual obligations to be incurred for (i) the construction of public works, to wit: (a) designing, constructing, improving and equipping the new Stephen G. Terrell Recreation Center and the acquisition of land and rights-of-way therefor, and (b) designing, constructing, acquiring, and improving public infrastructure within the City, including streets, storm sewer, sanitary sewer, water, detention, irrigation, landscaping, walking trails, and the acquisition of land and rights-of-way therefor, (collectively, the "Projects") and (ii) professional services rendered in relation to such projects and the financing thereof.

 

Amounts for the projects are $3 million for The Farm, $25 million for Stephen G. Terrell Recreation Center and $5.9 million for The Avenue.

 

The City further intends to make certain capital expenditures with respect to the Projects and currently desires and expects to reimburse the capital expenditures with proceeds of the certificates of obligation. The maximum principal amount of obligations expected to be issued for the Projects is $33,900,000.  


BUDGETARY IMPACT

Depending upon the final interest rates, the debt payment associated with the issuance of $33,900,000 in new bonds is expected to be an increase in the average annual debt service amount of approximately $2,550,000. The debt issuance will be structured to mature in 15 years. The debt payments will begin in fiscal year 2022.


STAFF RECOMMENDATION

Staff recommends that the City Council Adopt a Resolution Approving and Authorizing Publication and Posting of Notice of Intention to Issue Certificates of Obligation and Declaring Expectation to Reimburse Expenditures with Proceeds of Future Debt.


MOTION

I make a motion to adopt Resolution No. __________________ approving and authorizing Publication and Posting of Notice of Intention to Issue Certificates of Obligation and Declaring Expectation to Reimburse Expenditures with Proceeds of Future Debt.



ATTACHMENTS:
Description
Resolution