HomeMy WebLinkAbout023131 RES - 11/18/1997RESOLUTION
AMENDING THE RESOLUTION ADOPTING POLICIES AND
GENERAL RULES AND PROCEDURES OF THE CITY
COUNCIL TO ADD A NEW POLICY REGARDING
NOTIFICATION TO THE CITY COUNCIL PRIOR TO ISSUING
COMMERCIAL PAPER
WHEREAS, the City Council previously adopted Resolution No. 021901 establishing
policies and general rules and procedures of the City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. Resolution No. 021901 is amended by adding a new Part 18, "Notify City
Council Prior to Issuing Commercial Paper," a true copy of which is attached as Exhibit A and
incorporated herein.
ATTEST:
City Secretary
THE CITY OF CORPUS CHRISTI
APPROVED THIS THE 13 DAY OF No V . , 1997:
JAMES R. BRAY, JR., CITY ATTORNEY
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023131
Notify City Council prior to issuing Commercial Paper
1. vital Budget: All Utility System Projects will be submitted to the City Council as part of
the Capital Improvement Plan and the funding source will be clearly identified as Commercial
Paper. The permanent financing source for the projects also will be identified, i.e., State
Revolving Fund , moneys received by the City from the Texas Water Development Board
and/or Utility Revenue Bond proceeds or internal funds of the System.
2. Engineering and Construction Companies: All Utility System Capital Improvement contracts
for engineering or construction, which must be approved by City Council, will be submitted
to the City Council with reports that identify the funding source as Commercial Paper Notes
with the ultimate funding source also identified.
3. Scheduling: When payment schedules are established, Commercial Paper Program sales will
be scheduled to coincide with the payment. Commercial Paper will be issued after approved
invoices are verified. The Director of Finance will limit the number of transactions per month
to a minimum number.
4. Month y Reports: On a monthly basis, the Director of Finance will provide the City Manager
a report that clearly identifies the following:
• Number of transactions and amount of commercial paper issued in preceding month.
• New Commercial Paper or rollover (refinance) planned for the coming month.
• Current principal amount of outstanding Commercial Paper Notes and the interest
rate borne by the outstanding Commercial Paper Notes.
• Interest rate for the short term and long term debt and interest rate of issue
• Plans for conversion of short term to long term debt
• Amounts of issued and unissued
The City Manager will promptly transmit the monthly reports to the City Council.
Quarterly Reports No less frequently than once each calendar quarter, the City Council will
be provided with a summary of recent events relating to the System and actions taken by the
City with respect to such events. Such report shall include information relating to (i) the
financial condition of the System including the most recent balance sheet and income
statement available (or similar financial information prepared by City staff for review by the
City Council) and, once each year, a summary of the annual audit prepared for or with respect
to the System, (ii)major construction projects in progress or expected to begin during the next
six months, (iii)additional major capital projects with respect to the System the City Manager
expects the City to undertake in the future, and (iv) expectations of the City Manager relating
to the need of the City Council to authorize the issuance of additional indebtedness payable
from revenues of the System or raising utility rates during the next twelve months.
H/jca/notify.cpp Exhibit A
6. coordination and internal Control: The Director of Finance will coordinate all Commercial
Paper Program transactions with the Commercial Paper Dealers and the Financial Advisor to
review timing of issuances, rollovers and analysis of rates, to determine the desirability to
convert the Commercial Paper Notes into long term fixed rate debt.
Arbitrage: All Commercial Paper Notes proceeds will be expended within six months to
assure that there are no arbitrage considerations.
8. Interest Rate: The City Manager, on recommendation of the Director of Finance and
Financial Advisor, shall from time to time establish the maximum interest rate that is not to
be exceeded without having received, in the form of a resolution, the approval of the City
Council. The monthly reports to the City Council will include this information.
9. Commercial Paper Conversion to Long -Term Debt: The City Manager will make
recommendations to the City Council, as fiscally appropriate, to convert the Commercial
Paper Notes into long term fixed rate indebtedness of the System.
H/jca/notify.cpp
Corpus Christi, Texas
dayofI _-tka/IC/ir& ' , 19
The above resolution was passed by the following vote:
Loyd Neal
Jaime Capelo
Melody Cooper
Alex L. Garcia, Jr.
Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward A. Martin C�
jJ
Dr. David McNichols A�
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