Min - City Council - 1985 - 07/23 - Special CalledALLEN CITY COUNCIL
Called - Special Workshop Session
July 23, 1985
Present:
Donald P. Rodenbaugh
Council Members:
Joe Farmer, Mayor Pro Tem
Jim McClure
Rex Womack
Jim Wolfe
Jim Pendleton
Gary Koch
City Staff:
Jon McCarty, City Manager
Marty Hendrix, City Secretary
Charlotte Smith, Finance Director
Ernie Hoback, Director of Public Works
Guest•
J. D. Buchanan, with Schneider, Bernet, Hickman, the city's bond agent
The called - special workshop session of the Allen City
Council was called to order at 6:41 p.m. on Tuesday, July 23,
1985, in the Council Chambers of the Allen Municipal Annex,
One Butler Circle, Allen, Texas.
Workshop on Proposed Sale
of Revenue Bonds (Agenda Item II)
City Manager Jon McCarty distributed a packet of infor-
mation to the City Council showing the water and sewer revenue
bond projects in the amounts of $2.8 million and $1.8 million;
a schedule of debt requirements for the bonds; a schedule of
interest comparisons, schedule showing the coverage test,
reserve fund and yearly reserve requirements; projected income
statements; a schedule of coverage comparisons; and a ratio
analysis of cash on hand.
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Using overhead transparencies, he explained the water
and sewer projects in detail and advised in the reduction
from the previously presented $3.1 million in projects.
The Council discussed with city staff why there had
been a reduction made in the size of the ground storage
tank and how the sewer system improvements had been reduced.
Mr. McCarty then reviewed and explained the debt require-
ments of the water and sewer revenue bonds in the amounts
of $2.8 million for 20 years and 15 years and in comparison
the $1.8 million; he reviewed the schedule of interest com-
parisons and pointed out additional interest; and he
reviewed and explained the coverage test, the reserve fund/
interest and sinking requirements, and the yearly reserve
requirements.
The Council discussed the figure used for coverage
available and the projected coverage available with the new
rate schedule, and the yearly reserve requirements and
what figures were included in that amount.
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ALLEN CITY COUNCIL
July 23, 1985
Workshop on Proposed Sale
of Revenue Bonds (cont'd)
City Manager McCarty then reviewed
Council the projected income statements
for 20 years and 15 years and for the $1
years and 15 years. He then reviewed an
of coverage comparisons in the same bond
Page 2
(Agenda Item II)
and explained to the
for the $2.8 million
.8 million for 20
d explained the schedule
amounts.
The Council discussed the funds that were transferred
from the water and sewer account to the general fund, the
percentage used to consider the growth rate, the projected
amount of average interest earned, if a parity test had been
done on the $3.1 million first proposed and how did it com-
pared to the $2.8 million, and the need for reserve funds
from interest earned, how much the city is now earning, and
how those funds can be used.
J. D. Buchanan, the city's bond agent, spoke before the
Council on the projected interest rates the city might expect
to get when it sells its bonds.
City Manager McCarty then reviewed the ratio analysis
of cash on hand to monthly cash requirements.
City Manager McCarty advised the Council that all of the
information that had been presented resulted in the conclusion
that there was some advantages to the sale of the $2.8 million
in water and sewer revenue bonds for a 15 -year period, with
the knowledge that additional bonds would have to be sold
in the second year.
t There was further discussion by the Council on the
status of Allen becoming a member city to the North Texas
Municipal Water District, the question of the need for the
revenues in the water and sewer fund to meet the expenditures
and not using the developer fees for that requirement, being
able to use the excess revenues from the previous years, the
status of the second delivery point with the City of Plano,
and the action needed for the bond agent.
After the discussion, it was the conclusion of the
Council that the city's bond agent should proceed with the
sale of $2.8 million in water and sewer revenue bonds for
a 15 -year period.
Finalize Details for Presentation
to Bond Rating Agencies (Agenda Item III)
There was considerable discussion by the Council on the
dates for the trip to New York for the bond rating presentations
with the rating agencies.
After the discussion, it was concluded that the trip
would be on Monday, August 12th and Tuesday, August 13th,
with presentations to be made on Tuesday, August 13th.
Members of the Council that would be attending would be
Mayor Rodenbaugh, Mayor Pro Tem Farmer, Council Members
Wolfe, McClure, Womack and Pendleton. Council Member Koch
advised that he would probably not be able to attend.
J. D. Buchanan, the city's bond agent, advised that
Dan Almon and his staff would be setting up the plans for
the trip.
ALLEN CITY COUNCIL
July 23, 1985
Page 3
Items of Interest to the
City Council (Agenda Item IV)
There were no items of interest to be brought before
the Council at this time.
Adjourn
(Agenda Item V)
The called - special workshop session of the Allen City
Council was adjourned at 8:54 p.m. on Tuesday, July 23, 1985,
by Mayor Rodenbaugh.
These minutes approved on the 1st day of August
1985.
Marty Hendrix, ITY SECRETARY
Donald P. Rodenbaugh, MAYOR
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