Title
An ordinance of the City of Mesquite, Texas, authorizing the issuance and sale of City of Mesquite, Texas, Combination Tax and Limited Surplus Revenue Certificates of Obligation, in one or more series in the aggregate principal amount of not to exceed $32,200,000; levying a tax in payment thereof; awarding the sale thereof; prescribing the form of said certificates; approving execution and delivery of a paying agent agreement and bond purchase agreement; approving the official statement; approving and enacting other provisions relating thereto.
Body
The attached parameter ordinance authorizes Council to delegate the approval of the sale of Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2025 to the Director of Finance or an Assistant City Manager, as authorized by Chapter 1371, Texas Government Code, subject to all conditions as specified in the ordinance.
The Certificates pricing conditions and parameters include: a true interest rate not to exceed 5.25 percent; a total aggregate principal amount not to exceed $32,200,000; a 20-year maximum maturity limit of no later than August 15, 2045; and a credit rating among the four highest rating categories for long-term obligations as assigned by a nationally recognized rating agency.
This parameter ordinance would allow City staff up to 90 days after adoption to work with the City’s Financial Advisor, Hilltop Securities, to price the Certificates, subject to the above parameters, at the best possible rate when interest rates are moving, rather than locking in the price on the day of the Council meeting.
Recommended/Desired Action
Staff recommends approval of the ordinance.
Attachment(s)
Ordinance
Drafter
Ted Chinn
Head of Department
Ted Chinn