HomeMy WebLinkAboutResolution No. 2007-38 RESOLUTION NO. R2007-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, ADOPTING A POLICY GOVERNING THE
APPROVAL OF THE ISSUANCE OF DEBT BY THE WEST RANCH
MANAGEMENT DISTRICT.
* * * * * * * * * *
WHEREAS, on August 15, 2005, the City Council of the City of Friendswood, Texas,
consented to the creation of the West Ranch Management District, subject to certain terms and
conditions; and
WHEREAS, the West Ranch Management District is a special district created under
Section 59, Article XVI of the Texas Constitution, and has the legal authority to issue certain
debt; and
WHEREAS, the City Council supports the ability of the West Ranch Management
District to issue debt to further the purposes for which the District was created, subject to
approval by the City Council; and
WHEREAS, the City Council deems it appropriate and in the best interests of the
community to adopt a policy governing the approval of the issuance of debt by the West Ranch
Management District.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS:
Section 1. The facts and matters set forth in the preamble of this Resolution are
hereby found to be true and correct.
Section 2. The City Council of the City of Friendswood hereby adopts and approves
the Process for the Approval of the Issuance of Debt by the West Ranch Management District, as
described in Exhibit A, a copy of which is attached hereto and for all things made a part hereof.
PASSED,APPROVED, AND RESOLVED this 19th day of November, 2007.
Davi . H. Smith
N Ma or
ATTEST: �O� FR�E ��� y
� �O
�L • v o
Deloris McKenzie,T C � #
City Secretary a
A'T�� �!�
Exhibit A
West Ranch Management District
Debt Issuance Process
The following steps are intended to clarify the process that should be followed when the West
Ranch Management District(WRMD)plans to issue debt.
1) WRMD Board of Directors adopts a resolution requesting approval of bonds by TCEQ
and a bond application or otherwise approves a proposed debt issuance by formal action.
2) Once such action is taken by the Board, WRMD will submit the following information to
the City for review by special counsel and City's financial advisor for compliance with
City-WRMD agreements and consent conditions. No bond anticipation notes may be
sold without City approval. The required information includes:
a. Amount of bond issue;
b. Anticipated time of issuance;
c. Date by which formal approval by City Council is needed;
d. Cost summary for the bond issue;
e. Proposed debt service schedule, including principal and interest;
f. Ratio of value to debt;
g. Whether the District plans to issue BANS; and
h. Certification by WRMD that the proposed debt complies with the terms of the City—
WRMD agreements and consent conditions.
The City may request additional information it deems desirable for the performance of its
review, including without limitation a copy of the bond application submitted to the TCEQ.
3) City requests/receives comments form its appointed representatives on the WRMD Board
of Directors prior to City Council work session and City approval.
4) A work session is scheduled with City Council and WRMD's bond counsel and financial
advisor to discuss the proposed bond issue.
5) A resolution indicating the proposed bond issue complies with contractual requirements
and City consent conditions is taken to City Council for action.
6) Resolution is adopted by City Council authorizing requested debt issue by West Ranch
Management District.
7) WRMD proceeds with bond issuance.
8) Post closing, WRMD provides the City with a complete bond transcript, including the
bond issue official statement and a list of purchasers of the WRMD debt to the City.