SUBJECT
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A Resolution directing publication and posting of notice of intention to issue City of Laredo, Texas Combination Tax and Revenue Certificates of Obligation, in one or more series, in the maximum principal amount of $30,000,000.00 for various capital improvements, including: (1) acquiring, constructing, improving and equipping facilities to improve City telecommunications, wireless communications, information technology systems, applications, hardware, software, and cybersecurity; (2) renovating, improving, and equipping existing municipal buildings and facilities, (3) acquiring equipment and vehicles for various City departments, including the public safety departments, (4) acquiring, constructing, improving and equipping public safety facilities, including a fire station, (5) Acquiring, constructing, improving and equipping parks and recreational facilities, (6) planning, constructing, improving and repairing streets, sidewalks, bridges and drainage improvements, together with right-of-ways acquisition, traffic and street signalization, landscaping, and lighting improvements, (7) purchasing real property, materials, supplies, equipment, information technology, machinery, landscaping, land, and rights of way for authorized needs and purposes related to the aforementioned capital improvements and (8) paying legal, fiscal and engineering fees in connection with such projects.
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PREVIOUS COUNCIL ACTION
Presentation of the Plan of Finance by Noe Hinojosa of Estrada-Hinojosa & Company on July 22, 2024.
BACKGROUND
The City of Laredo is proposing to sell various bonds including a Certificate of Obligation Bond in the maximum principal amount of $30,000,000.00 to fund various capital improvement projects.
State law, particularly, Chapter 271 of the Local Government Code (the “Certificates of Obligation Act”) requires that notice (the “Notice”), the form of which is attached to this resolution as Exhibit A, be both posted on the City’s website and published in a newspaper of general circulation in the City prior to the sale of a series of Certificates of Obligation. Particularly, prior to the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of Obligation, notice: (1) must be posted continuously on the City’s website for at least 45 days, and (2) published in a newspaper of general circulation in the City on the same day in each of two consecutive weeks, the date of the first publication to be at least 46 days before the passage of the ordinance authorizing the issuance of the Certificates of Obligation. The purpose of this Resolution is to authorize and direct the appropriate City staff to coordinate for posting and publication of the Notice as required by state law.
The Ordinance authorizing the issuance, sale and delivery of the Certificates of Obligation is anticipated to be brought before the Council during its regularly scheduled meeting on September 16, 2024. As such, Notice will need to be posted and published no later than Thursday, August 1st.
In order for the issuance of the Certificates of Obligation to be considered “legal debt” of the City, the Attorney General’s approving opinion must be obtained. Before the Attorney General provides their approving opinion, they will want to see a transcript of proceedings that demonstrates compliance with State law. The approved “Notice of Intention Resolution” before you today is one of the items that the Attorney General will require before rendering an approving opinion.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Approve and adopt resolution approving the publication of notice of intent to sell bonds.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: N
Source of Funds: Bonds
Account #:
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
No financial impact at this time.