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HomeMy WebLinkAboutMin - City Council - 1988 - 02/02 - WorkshopALLEN CITY COUNCIL CALLED - SPECIAL WORKSHOP SESSION FEBRUARY 2, 1988 Present: Joe Farmer, Mayor Council Members: Rex Womack, newly appointed Council Member Jerry Wilson, Mayor Pro Tem Bobby Glass Jim Wolfe Jim Pendleton Jack Pennington City Staff: Jon McCarty, City Manager Marty Hendrix, City Secretary Charlotte Smith, Finance Director Guest: Dan Almon, City's Bond Agent with Southwest Securities, Inc With a quorum of the Council Members present, the called - special workshop session of the Allen City Council was called to order by Mayor Farmer at 7:04 on Tuesday, February 2, 1988, in the Council Chambers of the Allen Municipal Annex, One Butler Circle, Allen, Texas. Workshop on Proposed General Obligation Bond Sale (Agenda Item II) Dan Almon, city's bond agent with Southwest Securities, Inc., distributed to the Council handout materials showing the debt service schedule for the proposed sale of $2,500,000 in General Obligation Bonds and an article from "The Wall Street Journal", dated February 2, 1988, regarding the bond market. Mr. Almon spoke before the Council on the status of the bond market to date and how it appears for the next few months. Mr. Almon then reviewed the schedule of events for the proposed bond sale which included dates for the authorization by the Council for the bond sale, signing of the documents, purchasing of insurance, trip by Council to New York to visit bond rating agencies, bond sale and transfer of funds. Mr. Almon spoke before the Council on the importance of the bond rating trip to New York to visit the bond rating agencies and the need for the Council to do this especially this year due to the economic conditions existing in the state and locally and due to various financial conditions existing in the city. Mr. Almon advised that the City Manager had requested that he check into requesting that the bond rating agencies visit Allen. He advised that Standard and Poor's does plan to be in this area in February to visit McKinney and could include Allen in their visit. He advised that Moody's stated that they could not visit this area until around May, if they were available at that time. Mr. Almon pointed out to the Council the city's current bond ratings and the need to keep those ratings at those levels or better yet, try and raise them. The Council discussed with Mr. Almon the advantages of meeting with the bond rating agencies whenever the city is going to sell bonds and if anything ALLEN CITY COUNCIL CALLED - SPECIAL WORKSHOP SESSION FEBRUARY 2, 1988 Page 2 Workshop on Proposed General Obligation Bond Sale (cont'd) (Agenda Item II) is gained from meeting with them on a regular basis; if the timing is right now to sell bonds or should the city wait a few more months and perhaps their financial situation would improve; and how the delay in selling bonds would effect the capital improvement projects. City Manager Jon McCarty spoke before the Council on the funds needed for the construction of the new library building and that the delay in selling bonds would delay the construction of the library. There was further discussion by the Council with Mr. Almon on if there were other creative ways to fund capital improvement projects. Mr. Almon spoke before the Council on creative financing of debt service and how this can effect the bond rating and sale of other bonds. There was discussion by the Council on how far down the schedule of events for the proposed sale the Council can go before a final determination is made as to whether to sell the bonds now or at a later date; if there are any problems apparent in the upcoming audit document that will have an effect on the bond ratings; the potential of the city issuing taxable bonds versus tax-exempt bonds; and how the arbitrage rule figures into the bond sale process. City Manager Jon McCarty then distributed to the Council handout materials containing charts on the Capital Improvement Program - Bond Program Summary By Year, Capital Improvement Program - Bond Program Budget Summary, 1985 Bond Program - 1st Year Bond Budget, 1985 Bond Program - 2nd Year Bond Budget, Schedule of General Obligation Bonds - Authorized But Unissued, Status Report - Capital Improvement Program, Capital Improvement Program - Street Bonds, Capital Improvement Program - Main Street Analysis, and Capital Improvement Program - Main Street Cost Analysis. Using transparencies, Mr. McCarty reviewed the handout materials with the Council and answered questions pertaining to them. The Council discussed the amount of increase in the tax rate that was proposed when the original 1985 bond program passed and the actual increase in the tax rate each year; the status of the renovation to the Central Fire Station and why that project is not 100% complete as of this date; the amount of money available from the county for street improvements and how that money can be reallocated to various street projects; and if park bond funds can be used to landscape the McDermott/Main Street - Phases II and III project. The Council directed the city staff to research the park bond fund item. It was recommended by the Mayor that the City Manager identify, in a written format, the major decision points that the Council is going to have to resolve on the bond issue. Items of Interest to the Council (Agenda Item III) There were no items of interest to discuss at this time. This agenda item was passed over. Mayor Farmer recessed the regular session of the Allen City Council at 8:43 p.m. The regular session was reconvened at 8:59 p.m. The Mayor then adjourned the regular session of the Allen City Council into Executive Session at 8:59 p.m. Executive Session (Agenda Item IV) In accordance with Article 6252-17, V.A. T.C.S. (Open Meetings Law), Sections 2(e), 2(f), and 2(g), the Allen City Council convened into Executive Session at 9:00 p.m. in the Conference Room of the Allen Municipal Annex, One Butler Circle, Allen, Texas, in order to discuss matters pertaining to legal issues and real estate negotiations. ALLEN CITY COUNCIL CALLED - SPECIAL WORKSHOP SESSION FEBRUARY 2, 1988 Page 3 Executive Session (cont'd) (Agenda Item IV) The Executive Session was adjourned at 11:59 p.m. Reconvene (Agenda Item V) The Allen City Council reconvened back into regular session at 12:00 a.m. on Wednesday, February 3, 1988. Adjourn (Agenda Item VI) Mayor Farmer adjourned the called - special workshop session of the Allen City Council at 12:00 a.m. on Wednesday, Februry 3, 1988. These minutes approved on the 18th day of February , 1988. APPROVED: ATTEST: 1 1� A"' " L�. L Marty Hendrix, WC, CITY SECR TART