Title
An ordinance of the City of Mesquite, Texas, authorizing the issuance of City of Mesquite, Texas, Municipal Drainage Utility System Revenue Bonds, Series 2025 in the not to exceed aggregate principal amount of $3,850,000; approving an official statement; awarding the sale thereof; making provisions for the security thereof; authorizing the execution and delivery of a paying agent agreement; providing an effective date; approving and enacting other provisions relating thereto.
Body
The attached parameter ordinance authorizes Council to delegate the approval of the sale of Municipal Drainage Utility System Revenue Bonds, Series 2025 to the Director of Finance, an Assistant City Manager, or their designee, as authorized by Chapter 1371, Texas Government Code, subject to all conditions as specified in the refunding ordinance.
The pricing conditions and parameters include: a true interest rate of the bonds not to exceed 5.25 percent; a total aggregate bond principal amount not to exceed $3,850,000; a maximum maturity limit of no later than September 1, 2045, for any bond; 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 365 days after adoption to work with the City’s Financial Advisor, Hilltop Securities, to sell the bonds, 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