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AI# 11594
Regular City Council Meeting
6.6.
05/23/2023:
Information
Agenda Item
Ordinance Single Reading - Finance:
Consider the adoption of an ordinance of the City of Lubbock, Texas, authorizing the issuance and sale of City of Lubbock, Texas, Tax Note, Series 2023; levying a tax in payment thereof; and enacting other provisions relating to the subject.
Item Summary
This ordinance authorizes the issuance of the Tax Note, Series 2023. The purpose of the Tax Note is to pay contractual obligations incurred or to be incurred for:
(i) contractual obligations incurred or to be incurred for the purchase of the Property, including materials, supplies, equipment and machinery for the Solid Waste Department and Lubbock Fire Rescue purposes; and
(ii) paying the cost of issuance related to the Tax Note.
The Note will be excluded from gross income for federal income tax purposes, with annual payments of principal on February 15, 2024, through February 15, 2030, and with semi-annual interest payments beginning on February 15, 2024, and on each February 15th and August 15th thereafter, until maturity. Closing date is anticipated on June 21, 2023, subject to the Texas Attorney General approval.
The Note is being offered to potential lenders for investment in its own account as a privately negotiated bank loan. Responses from potential lenders for this Note must be submitted no later than May 22, 2023. The Note will be awarded to the proposal producing the lowest interest cost to the City and with the terms most advantageous to the City (including, but not limited to, paying agent fees, underwriting fees, bank counsel fees, and early redemption provisions). The recommended lender will be presented to the City Council for approval at the May 23, 2023 City Council meeting.
Fiscal Impact
The total par amount of issuance is estimated at $4,815,000, and will be paid from General Fund Revenues for the $2,675,000 allocated to Lubbock Fire Rescue and from System Revenues of the Solid Waste Department for the remaining $2,140,000.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Ordinance - 2023 Tax Notes
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