HomeMy WebLinkAboutMinutes City Council - 04/02/1992 - SpecialMINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
April 2, 1992
10 a.m.
PRESENT
Mayor Mary Rhodes
Council Members:
Betty Jean Longoria
Edward Martin
Joe McComb
Clif Moss
Absent
Mayor Pro Tem Cezar Galindo
Leo Guerrero
Dr. David McNichols
Mary Pat Slavik
City Manager Juan Garza
City Attorney James R. Bray, Jr.
City Secretary Armando Chapa
Mayor Rhodes called the meeting to order in the Council Chamber of City Hall.
City Secretary Chapa called the roll and verified that the necessary quorum of the
Council and the required charter officers were present to conduct the meeting.
City Manager Garza announced that the City is selling $23,635,000 of General
Improvement and Refunding Bonds. He indicated that $11,550,000 are new money bonds
and $12,085,000 are refunding bonds. Mr. Garza stated that the City is also selling
$3,000,000 in Combination Tax and Municipal Hotel Occupancy Tax Revenue Certificates
of Obligation and $500,000 Combination Tax and Marina Revenue Certificates of
Obligation.
Mr. Garza continued by stating that the bonds are rated AAA because they are
insured by the Financial Guaranty Insurance Corporation. He stated that the City has
received a 6.82 percent interest rate, with insurance and he described it as an excellent deal
for the City. Mr. Garza presented a booklet containing the final pricing information and
stated that the coupon rates on the City's bonds are very competitive with other sales that
have recently been put on the market.
MICROCIOAR
Minutes
tegular Council Meeting
April 2, 1992
Page 2
Mr. Garza stated that the City's bond rating for this issue is AA- from Standard and
Poors and A for Moody's. He presented a Moody's Credit Analysis and highlighted certain
statements outlined in the analysis. He indicated that Moody's would have preferred for the
City to have raised taxes. Mr. Garza stated that he is convinced that refunding is in the best
interest of the City.
Responding to a question from Council Member Moss, Mr. Garza discussed a
comparison of cost of borrowing with debt issues sold over the past three years. Mr. Moss
noted that interest rates are very low at this time and inquired if there would be an
advantage in refinancing all of the City's debt, and Mr. Garza responded that it would not
be an advantage at this time.
Council Member Martin inquired if the City has considered a total refunding to
reduce its interest rates, and City Manager Garza replied that there would not be an
economic savings in doing that.
A question and answer period followed in regard to the final pricing information.
Responding to a question from Council Member Martin about rates without
insurance, Mr. Jim Seale, M. E. Allison & Co. Inc., stated that the savings with insurance
was a four basis point savings.
Mr. Garza referred to comparisons of what other cities are paying and commented
on the City's Debt Service Schedule.
Mayor Rhodes stated that the City should be proud of the bond presentation which
was given in New York and she commended Rosie Vela, Finance Director, for the excellent
job she did.
Mr. R. F. Hasker, 1813 Wallace, expressed opposition to the bond sale because the
refinancing will extend the City's debt.
Mr. J. E. O'Brien, 4130 Pompano, inquired about the insurance costs. He stated that
this is a good deal for everyone except those who have to pick up the tab. He stated that
work that has been done by a previous City Manager to reduce the debt service portion of
the tax rate is all for naught because in a few years, the debt service tax rate will go up
again. He expressed opposition to the refunding.
Mr. Ron Hudson, 3556 Austin, commented in regard to a section in the City Charter
dealing with the refunding of bonds.
City Manager Garza stated that the insurance cost is paid from the bond proceeds
and he pointed out that the savings with insurance is four basis points.
Council Member Martin stated that the Council had no choice but to refinance the
old bond debt and move forward with the Capital Improvement Program. He stated that
the Council decided that this is the best approach to move the City forward.
Minutes
tegular Council Meeting
April 2, 1992
Page 3
City Secretary Chapa polled the Council for their votes and the following ordinances
were passed:
C. ORDINANCE NO.021361
PROVIDING FOR THE ISSUANCE OF $23,635,000 GENERAL
IMPROVEMENT AND REFUNDING BONDS, SERIES 1992, OF THE CITY OF
CORPUS CHRISTI, TEXAS, BEARING INTEREST AT THE RATES
HEREINAFTER SET FORTH, AND PROVIDING FOR THE LEVY,
ASSESSMENT AND COLLECTION OF A TAX SUFFICIENT TO PAY THE
INTEREST ON SAID BONDS AND TO CREATE A SINKING FUND FOR THE
REDEMPTION THEREOF AT MATURITY; REPEALING ALL ORDINANCES
IN CONFLICT HEREWITH; DECLARING AN EMERGENCY; AND
ORDAINING OTHER MA TIERS RELATED THERETO.
An emergency was declared and the foregoing ordinance passed by the following
vote: Rhodes, Longoria, Martin, McComb and Moss voting, "Aye"; Galindo,
Guerrero, McNichols and Slavik absent.
D. ORDINANCE NO, 021362
PROVIDING FOR THE ISSUANCE OF $3,000,000 CITY OF CORPUS CHRISTI,
TEXAS, COMBINATION TAX AND MUNICIPAL HOTEL OCCUPANCY TAX
REVENUE CERTIFICATES OF OBLIGATION, SERIES 1992; DECLARING AN
EMERGENCY; AND ORDAINING OTHER MA ITERS RELATING TO THE
SUBJECT,
An emergency was declared and the foregoing ordinance passed by the following
vote: Rhodes, Longoria, Martin, McComb and Moss voting, "Aye"; Galindo,
Guerrero, McNichols and Slavik absent.
E. ORDINANCE NO. 021363
PROVIDING FOR THE ISSUANCE OF $500,000, CITY OF CORPUS CHRISTI,
TEXAS, COMBINATION TAX AND MARINA REVENUE CERTIFICATES OF
OBLIGATION, SERIES 1992-A; DECLARING AN EMERGENCY; AND
ORDAINING OTHER MA ITERS RELATING TO THE SUBJECT.
An emergency was declared and the foregoing ordinance passed by the following
vote: Rhodes, Longoria, Martin, McComb and Moss voting, "Aye'; Galindo,
Guerrero, McNichols and Slavik absent.
There being no further business to come before the Council, Mayor Rhodes declared
the Council Meeting adjourned at 10:35 a.m. on April 2, 1992.
I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes
of the Special Council Meeting of the City of Corpus Christi of April 2, 1992, which were
approved by the City Council on April 7, 1992.
WITNESSETH MY HAND AND SEAL, this the 8th day of April, 1992.
Armando Chapa
City Secretary
SEAL