CC MEETING: April 16, 2024
DATE: April 5, 2024
TO: Erin Rinehart, City Manager
FROM: Diana K. Vaughn, CFO
Chrystal Davis, Assistant City Manager
Title
Consider An Ordinance of the City Council of the City of Carrollton, Texas, Authorizing the Issuance of "City of Carrollton, Texas, Waterworks and Sewer System Revenue Bonds, Series 2024"; Pledging the Net Revenues of the City's Combined Waterworks and Sewer System to the Payment of the Principal of and Interest on Said Bonds; and Resolving Other Matters Incident and Related to the Issuance, Sale, Payment, and Delivery of Said Bonds; Establishing Procedures for the Sale and Delivery of the Bonds; and Delegating Matters Relating to the Sale and Issuance of the Bonds to Authorized City Representatives.
Body
BACKGROUND:
The City plans to issue Waterworks and Sewer System Revenue Bonds, Series 2024 (the "Bonds") during the week of May 20th through a negotiated sale method. The Bonds will be issued to (1) finance approximately $8,000,000 of water and sewer improvements, (2) fund any required contribution to the Debt Service Reserve Fund securing the Bonds and other outstanding water and sewer system revenue bonds, and (3) and pay estimated costs of issuance of approximately $150,000.
FINANCIAL IMPLICATIONS:
The Bonds are payable and secured by a first lien on and pledge of the Net Revenues of the City's Waterworks and Sewer System. All costs of issuance will be paid from the proceeds from the issuance of the Bonds. Bonds will be subject to arbitrage law.
IMPACT ON COMMUNITY SUSTAINABILITY:
This bond issuance supports and aligns with the City Council's goals and objectives to properly manage infrastructure with fiduciary care and improves the City's financial position and sustainability.
STAFF RECOMMENDATION/ACTION DESIRED:
Consider An Ordinance of the City Council of the City of Carrollton, Texas, Authorizing the Issuance of "City of Carrollton, Texas, Waterworks and Sewer System Revenue Bonds...
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