Title
Consider a memorandum/resolution authorizing proceeding with issuance of certificates of obligation for capital projects and further directing the publication of notice of intention to issue certificates of obligation for capital projects.
Summary
DATE: April 18, 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.
The attached resolution is the first step in the process of issuing bonds to fund some of the capital projects. The resolution authorizes proceeding with the issuance of certificates of obligation, identifies the allowable uses of the proceeds, limits the maximum principal amount to $32 million, and directs a public notice of intent to be published. The public notice is included with the resolution and will be published on the same day during the weeks of April 30, 2023, and May 7, 2023. The notice will also be published on the City's website for more than 45 days.
Highlights of the remaining steps include obtaining a rating on the certificates of obligation, creating and distributing the Official State...
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