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, Certificates of Obligation, Series 2021." The certificates $33,900,000 are for the purpose of providing funds for (1) $25,000,000 for Stephen G. Terrell Recreation Center, (2) $3,000,000 for The Farm Economic Development Agreement, and (3) $5,900,000 for The Avenue Economic Development Agreement.

A parameters sale allows the City to take advantage of market conditions and pricing opportunities. The certificates are priced on a certain date and the pricing is approved by an appointed Pricing Officer of the City. The transaction has to be structured within certain parameters indicated in the authorizing ordinance. Such parameters for the bonds include: the size to not to exceed $33,900,000, the true interest cost rate not to exceed 4%, and the maximum maturity date for the bonds not to exceed August 2041 (20 years).

The attached Ordinance sets the form, details of, and authorizes the issuance and delivery of the certificates. The certificates 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 the second week of June. If the timetable does not change, the plan is to have the notes close on June 30. 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 $33,900,000 in new notes is expected to be an increase in the average annual debt service amount of approximately $1.93 million for the next 20 years. The debt issuance will be structured to mature in 20 years. The debt payments will begin in fiscal year 2022.

Staff recommends that the City Council adopt an Ordinance authorizing the issuance of "City of Allen, Texas, Certificates of Obligation, Series 2021"; 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, Certificates of Obligation, Series 2021"; establishing the parameters for the sale and issuance of such bonds; and delegating certain matters to authorized officials of the City.