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Red Oak council directs publication of notice for up to $38.5 million in certificates of obligation
Summary
Council voted 5-0 to publish a notice of intent to issue certificates of obligation up to $38.5 million; city staff said the notice will run for two consecutive weeks and be posted on the city website for at least 45 days ahead of ordinance consideration.
The Red Oak City Council adopted a resolution on Aug. 11 directing publication and web posting of a notice of intent to issue certificates of obligation (COs) in an amount not to exceed $38,500,000.
City staff said the resolution directs publication of the notice in the city's newspaper once per week for two consecutive weeks, and continuous posting on the city website for at least 45 days before the council considers the authorizing ordinance. Staff said publication will begin the coming Wednesday and again the following Wednesday, meeting the notice requirement for CO issuance.
Staff and bond counsel discussed the amount as a "maximum" or "not-to-exceed" authorization: the $38.5 million reflects a scenario that could be reduced at sale. Staff said the higher figure excludes certain items that must be issued differently (an example given was TMRS-related debt), which is why the amount is lower than earlier planning numbers that approached $40 million.
According to staff, the council will consider the ordinance authorizing issuance in the city's first regular September meeting; pricing and sale are tentatively scheduled via a special meeting for Sept. 29 to fit the 45-day window. The resolution passed 5-0. The transcript records votes of Franklin, White foot, Miller, Lightfoot and Smith in favor.
Amber from Hilltop (city's financial advisor) was present, and staff said there had been a thorough workshop on the COs and tax notes on July 30. No amendments to the resolution were offered at the Aug. 11 meeting.
