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(6)(a)

CITY COMMISSION REGULAR MTG

Meeting Date:

01/08/2025

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. 2025-004: A Resolution Authorizing Publication Of Notice Of Intention To Issue Certificates Of Obligation.

BACKGROUND (Brief Summary)

The City of Texas City has experienced exponential growth, and the City’s operations have grown to adequately service the growth. Unfortunately, our facilities are antiquated and/or too small to meet the current and future needs of our residents and staff. Several capital projects, including a centralized Municipal Complex, the expansion of the Engineering/Planning and Public Works complex and Library Renovations, are needed at this time to address these issues.

The issuance of COs must follow a series of resolutions and public notices under Texas law. State law requires adoption of a resolution authorizing 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 January 14th and 21st, which meets the 31-day notice requirement for the planned April 1st 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 $95,000,000, including deposits to construction and issuance costs.
This resolution is the beginning of the process to issue the Certificates of Obligation. Once the City Commission approves the resolution, the notice will be sent for publication in the January 14th and 21st newspapers to meet state statute requirements. Rating agency visits will be scheduled for early March, with a sale date of April 1, 2025. The City's financial advisors will monitor the market and report back to the City as the sale date approaches.

RECOMMENDATION

Staff recommends approval of Resolution No. 25-xx stating the City's intent to issue Certificates of Obligation on March 5, 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 minimize costs to taxpayers and distribute the burden throughout the useful lives of the improvements.

Fiscal Impact

Attachments

Texas City, 2025 Capacity (1.2.2025)

Texas City, 2025 Plan of Finance (1.2.2025)

Resolution

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