Title
Consider an ordinance authorizing the issuance and sale of Combination Tax and Revenue Certificates of Obligation, Series 2023, for capital projects.
Summary
DATE: June 27, 2023
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Certificates of Obligation
BACKGROUND AND FINDINGS:
During the Fiscal Year 2023 Budget process, City Council deliberated the different options to address capital improvement projects. On September 20, 2022, City Council provided a motion of direction to provide a financial forecast and future debt service capacity at a future meeting. On November 15, 2022, City Council received this information and provided a motion of direction to seek Citizen's input on potential bond projects at a Special City Council Workshop on January 9, 2023. After receiving Citizen's input on January 9, 2023, City Council provided a motion of direction to seek Citizen's input through a survey via the City's website and return for a follow up Special Workshop on March 30th. On March 30, 2023, a Special Workshop was held to discuss the results of the survey and receive Citizen's input on potential bond projects.
On April 25, 2023, City Council authorized proceeding with the issuance of certificates of obligation for these capital projects and directed the publication of notice of intention to issue up to $32 million of combination tax and revenue certificates of obligation for capital projects (CCMR# 23-073R). The language for the public notice was approved as part of the resolution and was published in the Killeen Daily Herald on May 1, 2023 and May 8, 2023. The notice was also published on the City's website.
On June 21, 2023, a bond rating with Standard and Poor's for the certificates of obligation was facilitated. The Official Statement was distributed to bidders for the competitive sale, and bid results are due back on July 11, 2023. The draft ordinance attached will be updated with the resu...
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