This ordinance authorizes the issuance of the Tax Note, in one or more series, for Fiscal Year 2026. The purpose of the Tax Note is to pay contractual obligations incurred or to be incurred to provide funds for the following purposes:
(a) To improve Public Safety Radio Equipment;
(b) To improve property, acquire, purchase, or finance personal property, appliances, equipment, facilities, furnishings or interests therein, whether movable or fixed, as described in the Ordinance, or such other property deemed by the City Council to be necessary, useful and/or appropriate for its purposes (collectively, the "Project"); and
(c) To pay the costs of issuance related to the tax note.
The Note will be payable from the levy and collection of a continuing, direct ad valorem tax, within the limits prescribed by law, on all taxable property within the City. The Note is being issued pursuant to the general laws of the State of Texas, particularly Chapter 1431, Texas Government Code, as amended, and an ordinance to be passed by the Lubbock City Council, on June 23, 2026, authorizing the issuance of the Note.
Annual payments of principal will be due on February 15 in the years 2027 through 2033 inclusive, with semi-annual interest payments beginning on February 15, 2027, and on each August 15 and February 15 thereafter, until stated maturity or prior redemption. Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months and will accrue from the date of delivery of the Note to the winning bidder.
The Note will be awarded to the proposal producing the lowest interest cost to the City and 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 June 23, 2026, City Council meeting.
The City anticipates the closing date to be July 21, 2026, subject to approval from the Texas Attorney General. |
The total par amount of issuance is estimated at $14,980,000.
- Public Safety Radio Equipment $6,000,000
- Vehicle Replacements - $8,885,000
- Cost of Issuance - $95,000
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