Title
Consideration of and action on an ordinance authorizing the issuance of the City of Deer Park, Texas, Certificates of Obligation, Series 2025; levying a tax and providing for the security and payment thereof; providing for the award and sale of said bonds; and enacting other provisions relating thereto.
Body
Summary:
In the FY 2023-2024 budget, the City allocated funds to begin the design of a new municipal courthouse. Additional funds were further allocated in the FY 2024-2025 budget to complete the design work. At the January 7, 2025 Council Workshop, the City's Financial Advisor, John Robuck, from BOK Financial Securities, Inc., and the City's Bond Counsel, Jonathan Frels, from Bracewell LLP, presented a financing plan and schedule of events for the issuance of the Certificates of Obligation, Series 2025, in the amount not to exceed $7,000,000.00 for the acquisition, construction and equipment of the municipal courthouse. The tentative schedule of events presented by Mr. Robuck included the sale of the Certificates of Obligation on March 4, 2025. Mr. Robuck and Mr. Jonathan Frels, from Bracewell LLP, will be in attendance at the March 4, 2025 workshop to present the results of the sale and to answer any questions related to this debt issuance.
The attached ordinance, which authorizes the issuance and sale of the certificates, is in draft form since the pricing of the certificates will take place the morning of March 4, 2025, the day of the City Council meeting. The pricing and other information will be updated and the final ordinance will be available prior to the meeting. Mr. Robuck and Mr. Frels will be in attendance at the workshop preceding this regular meeting to present the results of the sale and to review any questions on the legal documentation.
Fiscal/Budgetary Impact:
Payment of the debt service and issuance costs related to the Certificates of Obligation will be funded by ad valorem tax revenues.
Recommended action
Approve the ordinance authorizing the issuance of the City of Deer Park, Texas, Certificates of Obligation, Series 2025.