(8)(c)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 03/19/2025
- Title:
- NOTICE OF INTENT TO ISSUE CERTIFICATE OF OBLIGATION BONDS
- Submitted For:
- Cynthia Rushing
- Submitted By:
- Cynthia Rushing, Finance
- Department:
- Finance
Information
ACTION REQUEST
Consideration of and action on City of Texas City Resolution No. 2025-032: A Resolution Authorizing Publication Of Notice Of Intention To Issue Certificates Of Obligation.
BACKGROUND (Brief Summary)
The City of Texas has experienced exponential growth, and the City’s operations have grown to adequately service the growth. However, we have outgrown our current facilities. We have been extremely creative in our office spacing, doubling staff in one office and relocating staff to offsite facilities. This is not an optimal method of operation. You lose synergies, efficiencies, and the ability to collaborate easily.
This project is much more than a City Hall. It is about the re-centralization of our operations in a Municipal Complex and improving our ability to serve Texas City residents, its business owners, and our staff. The Municipal Complex will include the following departments:
Municipal Court
Marshal office
Utility Billing
Emergency Operations Center
Economic Development Center
Community Development
Administration- Mayor, HR, IT, Finance, Communications, Legal, City Secretary, Municipal Services, Management Services
In addition to the centralized Municipal Complex ($55M), the other capital projects included in this $75M ask are the expansion of the Engineering and Public Works facility ($3M), Library roof and HVAC repairs ($1.5M), and new Fire Station ($14M).
The issuance of COs must follow a series of resolutions and public notices under Texas law. State law requires the adoption of a resolution authorizing the publication of a notice stating the City’s intent to issue the certificates of obligation. The notice must be published once a week, for two consecutive weeks in a newspaper of general circulation in the City, with the date of the first publication at least thirty-one (31) days before the date tentatively set in said notice for the passage of the ordinance authorizing the issuance of such Certificates of Obligation. The notice is planned for publication on March 20th and 27th, which meets the 31-day notice requirement for the planned May 21st sale date. Resolution No. 25-xx authorizes publication of a notice of intention to issue Certificates of Obligation in a not to exceed amount of $75,000,000, including deposits to construction and issuance costs. This resolution begins the process of issuing the Certificates of Obligation. Once the City Commission approves the resolution, the notice will be sent for publication in the March 20th and 27th newspapers to meet state statute requirements. Rating agency visits will be scheduled for early May, with a sale date of May 21, 2025. The City's financial advisors will monitor the market and report to the City as the sale date approaches.
This project is much more than a City Hall. It is about the re-centralization of our operations in a Municipal Complex and improving our ability to serve Texas City residents, its business owners, and our staff. The Municipal Complex will include the following departments:
Municipal Court
Marshal office
Utility Billing
Emergency Operations Center
Economic Development Center
Community Development
Administration- Mayor, HR, IT, Finance, Communications, Legal, City Secretary, Municipal Services, Management Services
In addition to the centralized Municipal Complex ($55M), the other capital projects included in this $75M ask are the expansion of the Engineering and Public Works facility ($3M), Library roof and HVAC repairs ($1.5M), and new Fire Station ($14M).
The issuance of COs must follow a series of resolutions and public notices under Texas law. State law requires the adoption of a resolution authorizing the publication of a notice stating the City’s intent to issue the certificates of obligation. The notice must be published once a week, for two consecutive weeks in a newspaper of general circulation in the City, with the date of the first publication at least thirty-one (31) days before the date tentatively set in said notice for the passage of the ordinance authorizing the issuance of such Certificates of Obligation. The notice is planned for publication on March 20th and 27th, which meets the 31-day notice requirement for the planned May 21st sale date. Resolution No. 25-xx authorizes publication of a notice of intention to issue Certificates of Obligation in a not to exceed amount of $75,000,000, including deposits to construction and issuance costs. This resolution begins the process of issuing the Certificates of Obligation. Once the City Commission approves the resolution, the notice will be sent for publication in the March 20th and 27th newspapers to meet state statute requirements. Rating agency visits will be scheduled for early May, with a sale date of May 21, 2025. The City's financial advisors will monitor the market and report to the City as the sale date approaches.
RECOMMENDATION
Staff recommends approval of Resolution No. 2025-032 stating the City's intent to issue Certificates of Obligation on March 20, 2025, and authorizing publication of a notice in the Galveston Daily Newspaper. Approval will further the City's position as a strong steward of public dollars through reinvestment into facilities and infrastructure, and upon approval, the bond issues will be structured with an aggressive repayment schedule that will not increase the City's property tax rate.