Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: March 7, 2017
SUBJECT
Title
Consider adoption of an ordinance directing the publication of Notice of Intention to issue $71,640,000 in principal amount of Certificates of Obligation of the City of Denton for Waterworks and Sewer System and Electric System projects; and providing for an effective date.
Body
BACKGROUND
This ordinance provides the Notice of Intention to issue $71,640,000 in principal amount of Certificates of Obligation (COs) for Wastewater and Electric projects, as required by state law. The notice will be published once a week for two consecutive weeks in the Denton Record Chronicle, with the date of the first publication to be at least thirty-one (31) days before the date tentatively set for the passage of the ordinance authorizing the issuance of the bonds. These bonds will provide funding of $6,000,000 for Wastewater and $65,000,000 for Electric project costs. The additional $640,000 is for issuance costs and to allow flexibility in marketing and pricing the bond sale. The Audit/Finance Committee is scheduled to discuss this item, along with the entire FY 2016-17 bond program, on this day but prior to Council's consideration of this Notice of Intention.
Staff recommends the sale of $6,000,000 in COs for Wastewater projects. Below is a listing of recommended CO funded projects for Wastewater's FY 2016-17 CIP:
1. Hickory Creek Detention Facility - $ 5,300,000
2. West Wet Weather Peak Flow Basin and Pump Station - $ 300,000
3. 10" Concrete Pavement (Beneficial Reuse Site) - $ 200,000
4. Oversize Lines - $ 200,000
Total - Wastewater $ 6,000,000
Staff recommends the sale of $65,000,000 in COs for Electric projects. Below is a listing of recommended CO funded projects for Electric's FY 2016-17 CIP, which is broken down between transmission and distribution projects. Transmission projects represent approximately 69% of...
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