[1. CALL TO ORDER]
[00:00:07]
HELLO. WELCOME TO A SPECIAL MEETING ON APRIL 15TH AT 12 P.M. WE DO HAVE A QUORUM THE MAYOR IS ABSENT TODAY. UH, WITH THAT WE WOULD OPEN PUBLIC INPUT FOR ANYBODY WHO WOULD LIKE TO SPEAK ON ANY TOPICS ON THE AGENDA OR ELSE OTHERWISE. UH, 12 O'CLOCK. AT 12 O'CLOCK. ANYONE? ANYONE? OKAY, SAYING NONE. WE WILL CLOSE PUBLIC INPUT AND STAFF FIRST ACTION NIGHT OF MAY. THESE ARE
[3.A. Consider an Ordinance Authorizing the issuance of Town Of Northlake, Texas, General Obligation Bonds, Taxable Series 2024 in the aggregate estimated principal amount of $22,840,000 awarding the sale thereof; levying a tax, and providing for the security for and payment of said bonds; authorizing the execution and delivery of a paying Agent/Registrar Agreement; approving the official statement; Enacting other provisions relating to the subject; and declaring an effective date]
ALL RELATED TO THE UH, STAR CENTER MULTI SPORT NORTH LAKE PROJECT. UM THIS IS THE ISSUANCE OF THE FIRST TRANCHE OF THE GEO BONDS. AND WE HAVE, UH, OUR FINANCIAL ADVISOR MARTY XU WITH US, AS WELL AS OUR BOND COUNCIL, JULIE PART TO HELP US THROUGH THESE DOCUMENTS. UH THE SECOND ITEM IS JUST WHILE I'M UP HERE TO GO THROUGH ALL OF THEM THE SECOND ITEM. IS TO GIVE NOTICE TO ISSUES OF THE SEALS OF THE PUBLIC PART OF THIS PROJECT. UH AND THEN, FINALLY, C IS TO ARE THERE ANY EXPENSES? RELATED TO THE C OS. WE CAN GO AHEAD AND GET STARTED ON THAT PROJECT AND REIMBURSE IT MUCH LIKE YOU DID A REIMBURSEMENT RESOLUTION FOR THE GO BONDS WAS, AS SOON AS WE ISSUE THESE BONDS. WE ALREADY ARE GOING TO START SOME EXPENSES BECAUSE WE'RE GOING AS YOU KNOW, AS IS EXPEDITIOUSLY AS FAST AS WE CAN. UM I GUESS THAT'S REDUNDANT IN AN EXPEDITIOUS AND FAST SO ANYWAY, UM SO, UH, OUR FINANCIAL ADVISOR IS PROVIDED YOU WITH A DOCUMENTS FRESH OFF THE SHELF. UM, YOU OUT OF THE PRINTER. YOU MAY SEE AN 8. BUT THAT'S NOT WHAT THE TRUE INTEREST RATE IS. IT IS A LITTLE DIFFERENT FROM THE 22.84. BUT SHE CAN WALK YOU THROUGH. WE GOT A BONUS. OBVIOUSLY THERE'S ISSUANCE COST. BUT IF THAT THAT STAPLED SHEET. YOU CAN SEE THE WALKTHROUGH AND BOTTOM LINE IS WE'RE GETTING 22.5 LIKE WE SAID, AND PROJECT LINES FOR THIS. AND AGAIN, THE SECOND ITEM IS THE NOTICE OF INTENT. THAT'LL BE AN ITEM THAT WILL BE BROUGHT BACK TO YOU IN JUNE TO ISSUE ADDITIONAL DEBT FOR THE PUBLIC ASPECT OF THIS PROJECT, AND THEN, UH, THE OF COURSE, COINCIDING REIMBURSEMENT RESOLUTION. SO WHAT? WHAT WOULD YOU LIKE TO DO? CO HAVE YOU HAD ANY QUESTIONS? OR IF YOU'D LIKE, UH, ANY ANY OF OUR CONSULTANTS COME UP. FIRST A PERSON COUNSELORS. IF YOU HAVE ANY QUESTIONS, SO WE CAN KIND OF DIRECT THE FLOW OF THE MEETING. UM ZINC. OUTSTANDING QUESTIONS. OK? UH LET'S HEAR BRIEFLY FROM THE BOND COUNCIL AND JUST I'LL HAVE IT. FINANCIAL ADVISOR. I'M SORRY FINANCIAL ADVISOR. YOU CAN EXPLAIN THESE NUMBERS VERY QUICKLY. GOOD AFTERNOON COUNCIL. MORTY SHU WITH HILLTOP SECURITIES. WE REPRESENT THE TOWN ISSUE FINANCIAL ADVISOR. UM I'LL EXPLAIN THE SALE AND THE NUMBERS BEFORE YOU SO AS WAS MENTIONED. YOUR BONDS WERE SOLD THROUGH A COMPETITIVE SALE THIS MORNING. HOT OFF THE PRESS. WE JUST SOLD THEM. WE TOOK BIDS AT 10 A.M. SO IT WAS A LITTLE FAST AND FURIOUS TRYING TO GET EVERYTHING FINALIZED AND PRINTED TO GET HERE. UM AND WHAT THAT MEANS WITH THE COMPETITIVE SALES . ESSENTIALLY YOUR BONDS WERE PUT OUT ON THE OPEN MARKET AND ANY AND ALL UNDERWRITERS WERE INVITED TO SUBMIT. A BID FOR THE RIGHT TO PURCHASE AND SELL YOUR BONDS TO THE PUBLIC. SO LOW RATE WINS BEHIND TAB A OF THE BOOKLET. UH, WE HAVE INCLUDED THE BID RESULTS. UH ROBERT W BAIRD CAME IN WITH THE LOWEST PROPOSED TRUE INTEREST COST OF A 5.52. YOU RECEIVED FOUR TOTAL BIDS. JUST TO GIVE YOU AN IDEA. WE LIKE TO SEE A MINIMUM OF THREE BIDS. THAT'S WHAT WE WOULD CONSIDER A SUCCESSFUL SALE. UH AND THESE ARE TAXABLE BONDS, SO THEY ARE SOLD AT A TAXABLE RATE. IT'S A LITTLE BIT HIGHER THAN WHAT YOU'RE USED TO, OR TRADITIONALLY SEEING BECAUSE YOU TYPICALLY SELL BONDS AT A TAX EXEMPT RATE, BUT DUE TO THE NATURE OF THE PROJECT OF THE MALTESE, THE MALTESE SPORTS FACILITY AND THE UNDERLYING LEASE WITH THE STARS, WE ARE REQUIRED FROM A TAX PERSPECTIVE THAT THESE HAVE TO BE TAXABLE.SO A LITTLE BIT OF A HIGHER RATE. THAT BEING SAID, I'M STILL REALLY PLEASED WHERE THEY MEN JUST TO GIVE YOU AN IDEA LAST WEEK, WE WERE ESTIMATING, UM, A PRELIMINARY RATE OF ABOUT 5.85% SO THE 5.52% IS WELL BELOW OUR PRELIMINARY ESTIMATES. THAT TRANSLATES TO ABOUT $1.8 MILLION LESS IN PAYMENTS OVER THE LIFE OF THE BONDS THAN WHAT WE WERE USING FOR PRELIMINARY PLANNING PURPOSES, SO THAT'S ALL REALLY GOOD NEWS. UM AS YOU MAY IMAGINE , THERE'S BEEN A LOT OF VOLATILITY IN THE MARKET. WE'VE SEEN KIND OF CRAZINESS WITH RACE . YOU'RE PROBABLY BEEN FOLLOWING THE HEADLINES. WE'VE GOT LOTS OF GEOPOLITICAL, SOCIAL ISSUES THAT ARE CAUSING MARKET MOVEMENT
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EVERYWHERE. UM TAXABLES DO PRICE OFF OF THE TREASURY, WHICH ARE NOT LOOKING GREAT TODAY, SO ALL IN ALL, I THINK THIS IS A REALLY GOOD RATE. UM AND PART OF A VERY LARGE PART OF THE REASON THAT YOU ACHIEVED A VERY GOOD RATE IS , UH, DIRECTLY TIED TO THE FAVORABLE CREDIT RATING FOR THE TOWN, SO IT'S PART OF THE NORMAL BOND ISSUANCE PROCESS THE TOWN HAD TO APPLY FOR AND PURCHASE A BOND RATING. HISTORICALLY YOU HAVE ALWAYS GONE TO S AND P GLOBAL FOR A R. UH, THIS TIME WE ADDED ANOTHER RATING AGENCY TO THE MIX, AND THAT'S AS A RESULT OF THE HIGHER ISSUANCE SIZE. WE REALLY RECOMMEND THAT FOR INVESTOR INTEREST THEY LIKE TO SEE AS THE ISSUE SIZE GETS LARGER. THEY LIKE TO SEE MORE THAN ONE CREDIT RATING. SO WE BROUGHT IN FITCH RATINGS AS WELL. AND BOTH AGENCIES SAT DOWN WITH A TOWN STAFF. THEY ASKED A LOT OF QUESTIONS. THEY HAD TO PROVIDE A LOT OF INFORMATION SO THAT BOTH AGENCIES COULD CONDUCT A FULL CREDIT ASSESSMENT ON THE TOWN. S AND P DID AFFIRM THE TOWN AT THE A LEVEL WHICH IS WHERE THEY HAD YOU BEFORE, AND FITCH ALSO RATED YOU AT THE AA LEVEL LEVEL, SO THOSE RATINGS ARE ON PAR ACROSS BOTH AGENCIES.I THINK IT'S SIGNIFICANT TO NOTE THAT YOU'RE ONLY TWO NOTCHES AWAY FROM A PERFECT SCORE. THE CREDIT RATING OF THE TOWN IS VERY SIGNIFICANT BECAUSE IT'S JUST LIKE YOU OR I ARE OWN PERSONAL CREDIT RATINGS. THE HIGHER YOUR PERSONAL CREDIT RATING IS THE LOWER THE BORROWING COSTS WHEN YOU GO TO APPLY FOR A MORTGAGE OR A PURCHASE A CAR SAM HOLDS TRUE FOR THE TOWN. SO THE HIGHER YOUR CREDIT RATING THE LOWER THE COST OF BORROWING IS WHEN YOU GO TO ISSUE BONDS. WE DID INCLUDE THE RATING REPORTS AND PRESS RELEASE BEHIND TABOO FOR YOU FOR EACH OF THE AGENCIES. UM BOTH AGENCIES REALLY POINT OUT THE STRONG MANAGEMENT, FINANCIAL POLICIES.
FINANCIAL CONDITION OF THE TOWN, SO I ENCOURAGE YOU TO READ THOSE THROUGH. I THINK IT'S ALSO INTERESTING TO NOTE THAT FITCH BEING THE NEW AGENCY INVOLVED ACTUALLY SAID YOU SCORED METHODOLOGY WISE, UM ONE NOT HIGHER, BUT BECAUSE OF ALL OF THE PLANS AND THE LARGE AMOUNT OF DEBT ISSUANCE COMING ON ON BOARD FOR THE NEXT YEAR. THEY WANT TO SEE ALL THAT KIND OF HOW IT ALL PANS OUT AND MAKE SURE THAT THE REVENUE STREAMS ARE THERE SUFFICIENTLY TO THAT BEFORE THEY THEY PULL YOU UP A NOTCH. BUT AGAIN, I THINK THAT'S VERY POSITIVE. SO ASSUMING EVERYTHING GOES AS PLANNED, YOU MIGHT BE LOOKING AT POTENTIALLY AN UPGRADE IN THE NEAR FUTURE.
WE'LL KEEP OUR FINGERS CROSSED NO GUARANTEES ON THAT. WE PRINTED THE FINAL SET OF THE NUMBERS FOR YOU. SO YOU CAN, UH, NORMALLY WE WOULD HAVE THOSE IN THE BOOK, BUT AGAIN MOVING QUICKLY. UH, THIS ILLUSTRATES WHAT THAT INTEREST RATE TRANSLATES TO IN DOLLARS OVER THE LIFE OF THE BONDS. UM THESE ARE BEING SIZED TO PRODUCE EQUAL ANNUAL OR LEVEL PAYMENTS OVER A 30 YEAR PERIOD. SO KEEP IN MIND THAT TRUE INTEREST COSTS. YOU SEE THE COUPONS AND THE YIELDS TOGETHER THAT IS EFFECTIVE PRICE OF THE BONDS. UM, YOU WILL RECEIVED $22.5 MILLION OF PROJECT FUNDS THAT'S AVAILABLE FOR USE. UM AND THAT'S AFTER ALL, OF YOUR COST OF ISSUANCE ASSOCIATED WITH THIS, UM 5.52% AGAIN FOR A 30 YEAR TERM. THIS IS THE FINAL STEP OF THE BOND ISSUANCE PROCESS. SO BY ADOPTING THE ORDINANCE BEFORE YOU TODAY YOU EFFECTIVELY ACCEPTING THIS BID AND LOCKING THESE RATES INTO PLACE. UM AND CLOSING WILL MOVE FORWARD WHERE YOU'LL RECEIVE THE FUNDS ON MAY 17. I'M HAPPY TO ANSWER ANY QUESTIONS. COUNSEL ANY QUESTIONS? THANK YOU VERY MUCH. I'M GLAD TO SEE THAT WE'RE RATCHETING UP THE POTENTIAL OF THAT RATING AS WELL. SO EXCELLENT. THANK YOU FOR ALL YOUR POLICIES HAVE LED TO THAT, UH, SO FAR AND THE STAFF FOR THE GREAT REPORTING. ALL RIGHT. SO THANK YOU VERY MUCH, AND ON ACTION. I MAY CONSIDERING AN
[3.A. VOTE]
ORDINANCE AUTHORIZING THE ISSUANCE OF THE BONDS. UM A DISCUSSION OR CAN I HAVE A MOTION? MOTION TO APPROVE MOTION FOR MR GANS. I SECOND. THANK YOU, MISS LAWRENCE. ALL RIGHT, ANY DISCUSSION OR PROCEED TO VOTE? IT'S LIKE EVERYBODY'S READY. IT. I THINK HE DID. YEAH.ALL RIGHT WITH THAT THE MOTION PASSES 6 TO 0. UNANIMOUS. RIGHT, IB. IS THERE A RESOLUTION IN
[3.B. Consider a Resolution of the Town Council of the Town of Northlake, Texas, authorizing publication of Notice of Intention to Issue Certificates of Obligation; approving the preparation of a preliminary official statement and a notice of sale; and providing for the effective date thereof]
TOWN COUNCIL OF TOWN, NORTH LAKE TO AUTHORIZE PUBLICATION THOSE INTENTIONS? ISSUE CERTIFICATES OF OBLIGATION, IMPROVING THE PREPARATION OF PRELIMINARY OFFICIAL STATEMENT AND NOTICE OF[3.B. VOTE ]
SALE, PROVIDING FOR EFFECTIVE DATE THEREOF. UM, DO I HAVE A MOTION ON THAT? MOTION TO APPROVE THANK YOU, MR KER. SECOND THANK YOU, MR GANS. AND IF THERE'S NO DISCUSSION, YOU[00:10:04]
CAN PROCEED TO VOTE. MOTION ALSO PASSES 6 TO 0. UNANIMOUS. AND FINALLY A RESOLUTION EXPRESSING[3.C. Consider a Resolution of the Town of Northlake, Texas, expressing intent to reimburse certain expenditures from the proceeds of future debt obligations]
INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF THIS FUTURE DEBT OBLIGATIONS. WE DID DO THIS BEFORE WITH THE INITIAL ARCHITECTURE FEES AND THINGS LIKE THAT, UH, IT JUST[3.C. VOTE]
KEEPS THE BALL ROLLING. SO WITH THAT, I WILL MAKE A MOTION FOR THAT. DO I HAVE A SECOND? I SAY.THANK YOU, MR FOWLER. AND WE CAN . 6 TO 0. UNANIMOUS. COUNCILORS THANK YOU FOR COMING AN OFF TIME TODAY. I APPRECIATE THAT LOOK FORWARD TO SEEING OUR RESIDENTS AND BOARD MEMBERS AND COUNCILORS AT THE NEXT EVENT. YOU'RE AT THE STAR CENTER. GROUNDBREAKING. THAT STARTS AT 1245. AND LOOK TO SEE YOU THERE WITH THAT. WE STAND ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.