1998-06-29 CITY COUNCIL SPECIAL MEETING MINUTES204
MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON JUNE 29, 1998, AT 7:00 P.M., IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
The meeting was called to order with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
Interim City Attorney
City Secretary
Tom Reid
Larry Wilkins
Helen Beckman
Richard Tetens
William Berger
Klaus Seeger
Paul Grohman
Darrin Coker
Young Lorfing
Others in attendance: Project Coordinator Alan Mueller; City Engineer John Hargrove;
Director of Finance David Castillo; and Project Specialist Ruby Perez.
CALL TO ORDER
NEW BUSINESS:
FIRST AND ONLY READING OF ORDINANCE NO. 855 - AN ORDINANCE
AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF PEARLAND, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 1998; PRESCRIBING THE TERMS AND
FORM THEREOF; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL THEREOF
AND INTEREST THEREON; AWARDING THE SALE THEREOF; AUTHORIZING THE
PURCHASE OF BOND INSURANCE; MAKING OTHER PROVISIONS REGARDING
SUCH CERTIFICATES, INCLUDING USE OF THE PROCEEDS THEREOF, AND
MATTERS INCIDENT THERETO; AND DECLARING AN EMERGENCY.
Councilmember Beckman made the motion, seconded by Councilmember Tetens, to
approve Ordinance No. 855 on its first and only reading.
City Manager Paul Grohman stated that this has been a long process, and this is the next
step to sell the certificates of obligation for $17 plus million dollars. Mr. Grohman further
stated that council has been briefed on this matter previously, and Council has taken in
November, 1997 and in February of this year.
Financial Advisor with Dain Rauscher Frank Ildebrando addressed Council and stated
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that in May of this year the Texas Water Development Board considered the application
that the City submitted in and approved the sale of $17.1 million worth of certificates of
obligations which are a combination of tax and revenue obligations. The funds are
referred to as cross -cutter funds. Part of the money came from the federal government
in the form of contributions to the State of Texas, and then, the State of Texas combined
that with bond proceeds of their own. They averaged the interest rate on both, which
provided us the opportunity to receive an extremely low interest rate on our bonds. The
average interest rate that we officially received from the State last week on $17.1 is 3.586
%. He further stated that is at least one and one half percent lower than the going market
rate in todays municipal market. Mr. Ildebrando stated that the process that we are
proceeding with this evening is the passage of a Bond Order authorizing the issuance of
certificate of obligations which is part of the legal process of actually issuing the debt to
the State.
Rick Witte, Bond Council, with Mayor, Day and Caldwell outlined Ordinance No. 855.
Councilmember Berger stated that he had concerns about the tax rate being increased
to pay the debt on these bonds.
Mr. Ildebrando further explained the advantage of a combination tax and revenue
obligation over a revenue obligation.
City Manager Paul Grohman addressed Council regarding projected bond indebtedness.
Mayor Reid stated that this is a hard interest rate to beat.
There was further discussion between the Council and Mr. Grohman regarding revenue
bonds and certificates of obligation.
Project Coordinator Alan Mueller outlined some of the projects that would be funded with
the proceeds of the certificates of obligation.
Mr. Ildebrando stated that the City should receive the funding in approximately thirty days.
After lengthy discussion regarding the sale of the certificates of obligation, Mayor Reid
called for a vote on the motion.
Voting "Aye" Councilmembers Beckman, Tetens, Wilkins, and Seeger.
Voting "No" Councilmember Berger.
Motion Passed 4 to 1.
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COUNCIL ACTION - APPOINTMENT OF PEARLAND INDEPENDENT SCHOOL
DISTRICT TAX ASSESSOR (JO KNIGHT) TO CALCULATE AND PUBLISH THE
EFFECTIVE TAX RATE AND ROLLBACK TAX RATE FOR 1998.
Councilmember Tetens made the motion, seconded by Councilmember Beckman, to
appoint Jo Knight Pearland Independent School District Tax Assessor to calculate and
publish the effective tax rate and rollback tax rate for 1998.
City Manager Paul Grohman stated that six years ago the City consolidated our tax
collection effort with the school district which saves the City approximately $120,000 a
year. Jo Knight handles that #unction and recommends the approval of this action.
Voting "Aye" Councilmembers Seeger, Berger, Wilkins, Tetens, and Beckman.
Voting "No" None.
Motion Passed 5 to 0.
OTHER BUSINESS:
ADJOURNMENT
Meeting was adjourned at 9:05 p.m.
Minutes approved as submitted and/or corrected this the 271' day of July, A.D., 1998.
_ h
Tom Reid
Mayor
ATTEST:
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