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AH, GOOD EVENING. IT IS 5:02, AND I WILL CALL THIS MEETING TO ORDER AND THERE IS CFO
[1. Call to order]
JACKSON, RIGHT ON TIME.WELCOME TO THE SPECIAL, SPECIAL MEETING FOR THE CITY COUNCIL OF SOUTHLAKE ON AUGUST 11, 2021. AND I WILL DIRECTLY MOVE INTO ITEM NUMBER TWO, WHICH IS RESOLUTION NUMBER 21-031,
[2. Approve Resolution No. 21-031, Ordering a City Bond Election to be held on November 2, 2021 for the Issuance of a General Obligation Bond.]
ORDERING A CITY BOND ELECTION TO BE HELD ON NOVEMBER 2ND, 2021 FOR THE ISSUANCE OF A GENERAL OBLIGATION BOND.AND I WILL RECOGNIZE CITY MANAGER SHANA YELVERTON.
MAYOR, MEMBERS OF THE COUNCIL.
THIS ITEM HAS BEEN PLACED ON THIS SPECIAL MEETING AGENDA FOLLOWING YOUR DISCUSSION AT YOUR AUGUST SIX OR SEVENTH.
I CAN'T REMEMBER THE DAY MEETING WHERE OUR CHIEF FINANCIAL OFFICER WENT THROUGH A PROGRAM DESIGNED TO PROVIDE THE CITY WITH TAXPAYER OR VOTER AUTHORITY TO MOVE FORWARD WITH LAND ACQUISITION. AND AS SHE DESCRIBED IN THAT PRESENTATION, WE WOULD TARGET OUR EFFORTS TO OPEN SPACE AND STORMWATER MANAGEMENT.
THIS ELECTION WOULD BE HELD ON NOVEMBER 2ND IF YOU APPROVE THE RESOLUTION THAT'S ATTACHED TO YOUR AGENDA, WHICH IS AN ELECTION ORDER.
SO WE RECOMMEND APPROVAL BASED ON THAT CONVERSATION AND ARE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. THANK YOU, SHANA.
ANY QUESTIONS OF SHANA AT THIS TIME? THEN, I THINK IT'S APPROPRIATE.
THIS IS NOT A PUBLIC HEARING, BUT LET'S GET INTO DISCUSSION BECAUSE I THINK THERE IS SOME DISCUSSION ON WE TALKED ABOUT AS A COUNCIL, BUT ANY ANY FURTHER THOUGHTS FROM ANYONE.
YEAH, I HAVE SEVERAL QUESTIONS ABOUT THIS, AND WE KIND OF DISCUSSED IT A LITTLE BIT AT THE INITIAL PIECE, I'M STRUGGLING WITH WHY WE'RE SPENDING MONEY TO DO A SPECIAL ELECTION IN NOVEMBER AS OPPOSED TO JUST DOING THIS IN MAY WHEN WE HAVE THE REGULAR ELECTIONS.
AND I UNDERSTAND, LIKE IF WE HAD A IF WE HAD A PRESSING NEED OR WE HAD A PRESSING PIECE THAT WE WERE LOOKING AT OR SOMETHING THAT WE WERE IMMEDIATELY GOING TO ASSESS THESE FUNDS AND DO THAT WITH, MAYBE THAT'S A DIFFERENT STORY TO ME, BUT IT'S NOT A TON OF MONEY.
I GET IT. BUT IT IS SOMETHING IT'S NOT INCONSEQUENTIAL.
AND I JUST FEEL LIKE I FEEL LIKE IT'S WE'RE BEING PRESSED OR AT LEAST I FEEL LIKE I'M BEING PRESSED. SO I'M JUST TRYING TO FIGURE OUT WHY THAT IS.
YEAH, FOR SURE. I'M JUST WONDERING IF CFO JACKSON, CAN YOU KIND OF JUST GIVE US A HIGH LEVEL RECAP OF YOU TALKED ABOUT HOW IF WE WAITED AND PUT THIS ON THE MAY ELECTION, TALK ABOUT THE TIME GAP IN TERMS OF IF IT'S APPROVED AND THEN WHEN YOU CAN ACTUALLY GO PURCHASE BONDS.
AND YOU MENTIONED THERE WERE TWO I THINK TWO EITHER PERCENTAGES, SOMETHING WAS GOING TO GO UP NEXT YEAR THAT YOU KNOW ABOUT FROM THE FEDERAL GOVERNMENT THAT MIGHT AFFECT THE COST OF THESE BONDS. CORRECT? I MEAN, IF YOU CAN, OBVIOUSLY, THIS IS NOT ANYWHERE NEAR MY WHEEL HOUSE.
SO IF THE ELECTION IS IN NOVEMBER, AS EARLY AS MAY OF 2022, WE COULD ISSUE BONDS.
IF THE ELECTION WAS IN MAY OF 2022, THEN IT COULD BE LATER IN THE YEAR.
AND OF COURSE, WITH TIME, WHO KNOWS WHERE INTEREST RATES WILL GO.
THAT'S JUST A RISK FACTOR DETERMINING WHAT THE INTEREST RATES ARE, WHETHER INTEREST RATES ARE GOING TO GO. ONCE WE DECIDE WE FIND THE LAND AND IDENTIFY THE PROJECT AND WHEN WE WOULD ISSUE THE BONDS. IT'S THE TIME OF INTEREST RATES.
OK, THANK YOU. MS. KATHY. I CAN I THINK I CAN SHED SOME LIGHT ON THAT.
I BET YOU CAN'T. I WAS JUST REFERENCING THE FACT THAT THE FED BASICALLY INDICATED THAT THEY ANTICIPATE TWO INTEREST RATE MOVES IN 2022 AND WE DON'T KNOW WHEN THOSE ARE GOING TO OCCUR. BUT YOU KNOW, THEY DO LOOK AT IT ON A REGULAR BASIS.
AND BY THE TIME IF THIS WERE TO PASS IN NOVEMBER AND WE WERE ABLE TO ISSUE FRESH DEBT IN MAY, THERE MIGHT ALREADY BE ONE INTEREST RATE MOVE BY THAT POINT IN TIME.
THERE'S A LOT OF VARIABLES THAT ARE TAKEN INTO CONSIDERATION.
I CERTAINLY RESPECT YOUR POSITION AND YOUR CONCERN ON THE DOLLAR SPENT TO POST THIS ELECTION, BUT I FEEL STRONGLY THAT WE NEED TO PROVIDE ALL THE RESOURCES POSSIBLE TO MS. JACKSON AND HER STAFF TO BE ABLE TO, IF WE IDENTIFY A PIECE OF REAL ESTATE THAT WE FEEL WILL BE BENEFICIAL, WHETHER IT'S FOR WATER DRAINAGE ISSUES OR OPEN SPACE OR A COMBINATION THEREOF OR ANY OTHER TYPE OF PIECE OF REAL ESTATE THAT WE FEEL NECESSARY AS PART OF THE PORTFOLIO HERE FOR SOUTHLAKE THAT WE HAVE THE ABILITY TO ACT ON THAT.
AND IF WE WAIT, IT'S JUST GOING TO PUSH OUT THAT TIMELINE THAT MUCH FURTHER.
AND SO KNOWING THAT THIS, IF IT IS APPROVED, IS MORE OF A LINE OF CREDIT VERSUS ACTUALLY ISSUING THE DEBT, I DON'T FEEL LIKE THE COST ASSOCIATED WITH THE ELECTION ITSELF IS MONETARILY SIGNIFICANT TO THE TAXPAYERS.
AND I THINK THE RESOURCES THAT IT PROVIDES US, IF APPROVED, WOULD BE GREATER THAN THE COST ASSOCIATED WITH IT.
BUT CORRECT ME IF I'M WRONG, BECAUSE I MET WITH WITH SHARON AND WITH SHANA THIS WEEK AND NOT PUTTING THIS ON THE ON THE BALLOT IN NOVEMBER DOESN'T PRECLUDE US FROM PURSUING ANY OPPORTUNITY WE SEE.
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THE CITY CAN BORROW MONEY JUST LIKE ANY OTHER ENTITY CAN.IT DOESN'T HAVE TO BE BOND MONEY.
SO IF WE FOUND A PROJECT THAT WE FELT LIKE WAS WORTHY AND HAD SOME TIME ESSENCE TO IT, WE COULD ABSOLUTELY GO TO A TO A REGULAR SOURCE AND AND OBTAIN FINANCING THAT WAY.
CORRECT? SO I'LL TAKE A STAB FIRST AND THEN SHARON CAN JUMP IN.
THE ISSUE REALLY WITH THE ELECTION IS ABOUT ASKING THE TAXPAYERS THEIR OPINION ON THE CONCEPT OF THE PROGRAM.
FINANCIALLY, WHEN WE SEE AN OPPORTUNITY, WE CAN MOVE ON IT.
WE COULD EVEN REIMBURSE OURSELVES IF WE NEEDED TO.
BUT THE QUESTION REALLY THAT I THINK THE COUNCIL HAS DISCUSSED TAKING TO THE VOTERS IS, DO YOU LIKE THIS CONCEPT MORE THAN ANYTHING? AND TO YOUR POINT, I THINK AND DIRECTOR JACKSON, YOU CAN SPEAK TO THIS BETTER THAN I CAN, BUT WHETHER WE'RE ISSUING TRADITIONAL BOND DEBT OR SOME OTHER FORM OF DEBT FINANCING, HAVING THE OPTION TO IDENTIFY THE COST OF FUNDS GIVES HER MORE OPTIONS THAN NOT HAVING THE THE PLACEMENT SHOULD THE TAXPAYERS CHOOSE THIS AS AN OPTION.
WOULD YOU LIKE TO ADD ANYTHING TO THAT? NO, TO CITY MANAGER'S POINT, IT'S MORE ABOUT THE PURPOSE AND THE USE OF THE BONDS.
IS THE PROGRAM IF THIS IS SOMETHING THE TAXPAYERS ARE INTERESTED IN PARTICIPATING IN.
CAN WE SINCE COUNCILMAN ROBBINS HAS SOME CONCERN ABOUT THE COST, CAN WE JUST EXPRESS THAT AGAIN? CAN YOU IDENTIFY WHAT THE COST IS FOR THE ELECTION? SO FOR TARRANT COUNTY'S PORTION, IT WOULD BE EIGHTY DOLLARS FOR DENTON COUNTY'S PORTION WOULD PROBABLY BE ABOUT SEVENTY NINE HUNDRED AND THEN THERE ARE COSTS ASSOCIATED WITH THE TRANSLATION FEES.
SO YOU HAVE TO TRANSLATE INTO SPANISH AND VIETNAMESE.
SO THERE'S PROBABLY ABOUT A THOUSAND DOLLARS OR SO WITH THAT.
ROUGHLY SEVENTY NINE HUNDRED DOLLARS.
WE ONLY HAVE LIKE 100 PEOPLE WHO LIVE IN DENTON COUNTY.
THERE'S FOUR HUNDRED AND NINETY EIGHT, I THINK REGISTERED VOTERS.
NO OFFENSE TO KATHY TALLEY BECAUSE SHE MAY LIVE IN DENTON COUNTY.
I HAVE FRIENDS THAT DO BUT I DO NOT.
NO, WE CARE ABOUT THOSE 498 TOO SO.
SEVENTY NINE HUNDRED DOLLARS WORTH.
YEAH. I THINK MY PERSPECTIVE I HERE YOUR POINT ABOUT THE MONEY.
I THINK IT'S RELEVANT AND I ABSOLUTELY THINK IT'S RELEVANT.
MY PERSPECTIVE I GUESS IS LIKE SHANA IS IS THIS IS THIS IS MORE ABOUT ASKING THE TAXPAYERS IF THEY WANT THIS AND IF THEY, IF THEY DON'T, THEN THAT'S OK.
THEN WE MOVE ON. IF THEY DO, THEN WE CAN MAKE YOU KNOW, WE CAN FIT THIS INTO A LARGER STRATEGY OVER THE NEXT THREE OR SIX YEARS.
AND I THINK THERE'S VALUE TO THAT.
VALUE TO BE ABLE TO MOVE QUICKLY.
BECAUSE IF I MEAN, IF THE TAXPAYERS SHOW UP IN NOVEMBER AND THEY SAY, I'M NOT INTERESTED, YOU GUYS, YOU KNOW, I'D RATHER KEEP MY MONEY.
YOU ALL DON'T NEED TO BUY GREENSPACE, THEN THAT'S FINE.
THAT WE PUT IT TO BED AND WE MOVE ON.
FOR ME FROM A JUST A POLICY STANDPOINT.
I WOULD LOVE TO HAVE THAT QUESTION ANSWERED AS SOON AS POSSIBLE.
THAT'S MY THOUGHT. VALID CONCERNS.
I MEAN, THE DECISION POINT TO ME IS IT'S EITHER WE KNOW WE HAVE A FIXED COST TO DO IT.
NINE THOUSAND DOLLARS OR SO FIXED COST.
THAT'S THAT'S THE WORST CASE SCENARIO COSTS.
TO COUNCIL MEMBER PATTON'S POINT.
I MEAN, I'M NOT A FINANCIAL EXPERT, BUT IT'S PRETTY FAIR TO SAY THAT IN THE FIRST HALF OF NEXT YEAR, YOU COULD SEE THAT FIRST RATE MOVE ON THE AMOUNT OF MONEY WE'RE TALKING ABOUT ON A BOND ISSUANCE A QUARTER POINT, YOU KNOW, MAKES 8 THOUSAND DOLLARS LOOK OR NINE THOUSAND DOLLARS IS NOTHING ON A QUARTER POINT DIFFERENCE ON A BOND ISSUE.
AND SO FOR ME, IT'S MORE OF A IT'S A BALANCE OF TAKING THE RISK.
I'M WILLING TO RISK NINE THOUSAND DOLLARS TO SAVE EXPONENTIALLY MORE THAN 9000 DOLLARS ON A QUARTER POINT OF INTEREST IF WE FOUND LAND WE WANTED IN MAY OF NEXT YEAR, FOR INSTANCE, BECAUSE THAT'S THE EARLIEST WE COULD USE IT.
SO TO ME, THAT'S A REASONABLE I COULD EXPLAIN THAT TO ANYBODY.
YEAH, WELL, THAT'S WHY I FEEL GOOD ABOUT IT.
I THINK YOU BRING UP A VALID POINT.
THAT'S KIND OF DIRECTIONALLY WHERE I WAS GOING.
BUT TO YOUR POINT, I CAN UNDERSTAND WHY YOU FEEL LIKE MAYBE THIS IS A RUSH.
BUT, YOU KNOW, WE'VE BEEN TALKING ABOUT THIS FOR THE PAST COUPLE OF YEARS AND WE PLANNED ON MOVING FORWARD THIS RIGHT WHEN COVID HIT.
SO WE JUST TOOK IT OFF THE AGENDA.
SO, YOU KNOW, IF YOU LOOK AT, YOU KNOW, FUTURE FORECASTS FOR WHERE WE'RE LANDING ON PROPERTY TAX REVENUES AND SALES TAX REVENUES, THE CITY IS IN VERY SOUND SHAPE, AND I THINK IT AFFORDS US AN OPPORTUNITY TO MOVE FORWARD ON SOMETHING THAT WE PROBABLY WOULD HAVE INITIATED. ACTUALLY, NOT PROBABLY WE WOULD HAVE BEEN INITIATED PRIOR TO COVID, FOR SURE. IT WAS GOING TO BE ON THE BALLOT.
YEAH, YEAH. I MEAN, AND I DON'T NECESSARILY HAVE A HUGE ISSUE WITH OFFERING IT TO THE VOTERS TO SOME DEGREE. BUT THERE IS I DEFINITELY HAVE SOME IT'S NOT JUST ELECTION.
I MEAN, I HAVE CONCERNS ABOUT THE BOND IN GENERAL OFFERING 50 MILLION DOLLARS THAT HAS A
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40 YEAR TIME FRAME THAT, YOU KNOW, BE UTILIZED.WHO KNOWS YOU'RE NOT GOING TO BE HERE IN NINE MONTHS OR 10 MONTHS, WHATEVER IT IS, PERIOD. AND THEY'RE YOU KNOW, IF THAT IF THE COUNCIL TURNS OVER IN A WAY THAT I MEAN, THAT'S JUST A BIG CHECK FOR THE CITY TO SIGN ON TO OR A BIG POTENTIAL CHECK FOR THE CITY TO SIGN ONTO. AND YEAH, BUT MY UNDERSTANDING YOU'RE PROBABLY ABOUT TO SAY THIS IS THAT YOU WOULD YOU WOULD ONLY BUY BONDS AS NEEDED IN TERMS OF DOLLAR AMOUNTS, RIGHT? NOT ALL AT ONCE. YEAH.
IT'S AS NEEDED TO ADDRESS THE PROJECTS.
I MEAN, WE HAVE THAT OPTION AS WELL.
I MEAN, WE'RE JUST GOING TO A MAXIMUM POTENTIAL.
RIGHT. AND SO I CERTAINLY APPRECIATE AND RESPECT YOU WANTING TO BE AS FISCALLY CONSERVATIVE AS POSSIBLE.
I REALLY DO. I MEAN, YOU'RE PREACHING TO THE CHOIR FROM THAT PERSPECTIVE, BUT I FEEL LIKE THIS IS A PRUDENT OPTION FOR OUR TAXPAYERS AT THIS POINT.
I CERTAINLY DO RESPECT WHERE YOU'RE COMING FROM.
THAT'S FOR SURE. ANY OTHER DISCUSSION.
OK, WITH THAT, LET'S HAVE A MOTION.
I MOVE WE APPROVE ITEM NUMBER TWO, OTHERWISE REFERRED TO AS RESOLUTION NUMBER 21-031 ORDERING A CITY BOND ELECTION TO BE HELD ON NOVEMBER 2ND, 2021 FOR THE ISSUANCE OF A GENERAL OBLIGATION BOND, NOTING THE FOLLOWING, BEAR WITH ME.
THIS IS GOING TO BE A LONG ONE.
THE ELECTION SHALL BE HELD IN THE CITY OF SOUTHLAKE, TEXAS, ON THE SECOND DAY OF NOVEMBER 2021, WHICH IS A UNIFORM ELECTION DATE UNDER THE TEXAS ELECTION CODE AS AMENDED AND IS NOT LESS THAN 78 DAYS, NOR MORE THAN 90 DAYS FROM THE DATE OF THE ADOPTION OF THIS RESOLUTION FOR THE PURPOSE OF SUBMITTING THE FOLLOWING MEASURE TO THE QUALIFIED VOTERS OF THE CITY. PROPOSITION A SHALL THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, BE AUTHORIZED TO ISSUE AND SELL ONE OR MORE SERIES OF A GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE, PRINCIPAL AMOUNT OF NOT MORE THAN FIFTY MILLION DOLLARS FOR THE PURPOSE OF DESIGNING, ACQUIRING, CONSTRUCTING, RENOVATING, IMPROVING AND EQUIPPING THE CITY PARKS AND ACQUIRING LAND.
THIS ALSO INCLUDES PASSIVE PARKS AND OPEN SPACE IMPROVEMENTS, INTEREST IN LANDS AND RIGHTS OF WAY NECESSARY THERE TO SUCH BONDS TO MATURE [INAUDIBLE] OR OTHERWISE NOT MORE THAN 40 YEARS FROM THEIR DATE IN ACCORDANCE WITH LAW AND ANY ISSUE OR SERIES OF SAID BONDS TO BEAR INTEREST AT SUCH A RATE OR RATES FIXED, FLOATING VARIABLE OR OTHERWISE, AS MAY BE DETERMINED WITHIN THE DISCRETION OF THE CITY COUNCIL, PROVIDED THAT SUCH RATE OF INTEREST SHALL NOT EXCEED THE MAXIMUM RATE PER ANNUM AUTHORIZED BY LAW AT THE TIME OF THE ISSUANCE OF ANY ISSUE OR SERIES OF SAID BONDS.
AND SHALL THE CITY COUNCIL OF THE CITY BE AUTHORIZED TO LEVY AND PLEDGE AND CAUSE TO BE ASSESSED AND COLLECTED ANNUAL AD VALOREM TAXES WITHIN THE LIMITATIONS PRESCRIBED BY LAW ON ALL TAXABLE PROPERTY AND SAID CITY SUFFICIENT TO PAY THE ANNUAL INTEREST AND PROVIDE A SINKING FUND TO PAY THE BONDS AT MATURITY AND THE COST OF ANY CREDIT AGREEMENTS EXECUTED IN CONNECTION WITH THE BONDS.
THERE'S MORE THAT'S THE PROPOSITION EIGHT, THE OFFICIAL BALLOT SHALL BE PREPARED IN ACCORDANCE WITH THE TEXAS ELECTION CODE AS AMENDED SO AS TO PERMIT VOTERS TO VOTE FOR OR AGAINST THE AFORESAID MEASURES WHICH SHALL APPEAR ON THE BALLOT SUBSTANTIALLY AS FOLLOWS.
THE ISSUANCE IS NOT TO EXCEED 50 MILLION DOLLARS OF CITY OF THE SOUTHLAKE TEXAS GENERAL OBLIGATION BONDS FOR PARK IMPROVEMENTS, INCLUDING OPEN SPACE AND PASSIVE PARKS, AND THE IMPOSITION OF A TAX SUFFICIENT TO PAY THE PRINCIPAL OF AN INTEREST ON THE BONDS.
EARLY VOTING BEGINS ON MONDAY, OCTOBER 18TH, 2021, AND ENDS ON FRIDAY, OCTOBER 29TH, 2021. ELECTION DAY IS TUESDAY, NOVEMBER 2ND, 2021.
ELECTION DAY POLLING LOCATIONS ARE OPEN FROM 7:00 A.M.
SOUND GOOD SHARON? YOU'RE OK WITH MOTION? IS THERE A SECOND? PLEASE CAST YOUR VOTE.
OK, THAT PASSES 4-1, AND THAT IS THE LAST TIME ON THE AGENDA SO WITH THAT, WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.