12. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on the Approval of a Single-Family Reconstruction Program contract with HOME Program Funds for 1317 Mesquite (Tim Littlejohn)

[12. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on the Approval of a Single-Family Reconstruction Program contract with HOME Program Funds for 1317 Mesquite (Tim Littlejohn)]

CONVERSATIONS IN THE AUDIENCE. WE WILL ASK TIMLITTLEJOHN TO

PRESENT ITEM NUMBER 12. >> THANK YOU, MAYOR.

COUNCIL, UP FOR YOUR CONSIDERATION THIS MORNING IS A REHABILITATION RECONSTRUCTION PROJECT LOCATED AT 1317 MESQUITE STREET. HERE IS THE FLOOR PLAN OF THE RECONSTRUCTION PROJECT. CB-2333.

HERE IS THE EXTERIOR ELEVATIONS. THE AGREEMENT FOR THIS OWNER-OCCUPIED PROJECT INVOLVES RECONSTRUCTION OF THE EXISTING PROJECT. -- PROPERTY.

SORRY. THE PROPERTY WAS ADVERTISED FEBRUARY 26, MARCH 5 BIDS WERE OPENED.

THREE BIDS WERE RECEIVED. TWO BIDS WERE IN THE SAME AMOUNT. THE PROCESS FOR CHOOSING THIS CONTRACT WOULD BE A DRAWING OF NAME IN ORDER TO AWARD A BID.

COUNCIL SHALL VOTE ON THE RESULTS, AND I WOULD BE HAPPY TO

ANSWER ANY QUESTIONS. >> THIS IS KIND OF A UNIQUE SITUATION. WE HAVE NEVER DEALT WITH THIS BEFORE REALLY. WE HAD TWO CONTRACTORS COME IN AT THE EXACT SAME AMOUNT WHICH, BY LAW, REQUIRES A DRAWING OF NAMES TO CHOOSE THE CONTRACTOR. THEN Y'ALL HAVE TO VOTE ON THOSE

RESULTS. >> STANLEY, OF COURSE, IS OUR ATTORNEY. WOULD YOU WEIGH ON THIS TO PROVIDE CLARITY, TO BE SURE WE ARE COMMUNICATING WHAT WE ARE

DOING? >> YES, MAYOR.

IN THIS INSTANCE, AS TIM HAS STATED, WE HAD TWO QUALIFIED, REPUTABLE CONTRACTORS BID THE IDENTICAL BID WHICH IS UNUSUAL IN AND OF ITSELF. AND SO UNDER TEXAS LAW, THE LOCAL GOVERNMENT CODE, THIS IS TEXAS LAW.

NOT OUR LOCAL LAW. TEXAS LAW SAYS THAT WHEN YOU LOOK AT BOTH BIDDERS AND IF ONE OF THOSE BIDDERS IS A RESIDENT OF THE CITY AND THE OTHER IS NOT, THEN YOU PICK THE ONE THAT

[00:20:02]

IS THE RESIDENT OF THE CITY. BUT THEN IF THEY ARE BOTH RESIDENTS OF THE CITY WHICH IS THE SITUATION WE HAVE HERE TODAY, THEN THE CITY MUST PICK THE WINNER OR THE BIDDER BY THE CASTING OF-- DRAWING OF NAMES. THAT STATE LAW REQUIRES US TO DO

THIS PROCESS. >> ANY QUESTIONS FROM THE COUNCIL PRIOR TO THE PUBLIC HEARING AND PRIOR TO SELECTING BY CASTING OF LOTS? ALL RIGHT.

THANK YOU. AT THIS TIME, I'LL OPEN UP THE PUBLIC HEARING. IS THERE ANYONE THAT WOULD LIKE TO SPEAK EITHER FOR OR AGAINST THIS ITEM? IF SO, COME FORWARD, GIVE YOUR NAME FOR THE RECORD.

SEEING NO ONE, I'LL CLOSE THE PUBLIC HEARING.

AND IN THIS CEREMONY OF CASTING THE LOTS, HOW DO WE DO THAT?

>> MAYOR, WE HAVE THE DEPUTY CITY SECRETARY TO COME UP.

YOU WILL DRAW A CARD. YOU DO NOT KNOW WHAT THE CARD IS. IT IS JUST A CARD.

YOU WILL PICK THE ONE. THE ONE YOU PICK WILL BE THE

WINNER. >> ALL RIGHT.

I HAVE NEVER DONE THIS BEFORE. LAST 21 YEARS.

>> WE SHOULD HAVE A DRUMROLL OR SOMETHING LIKE THAT.

>> ALL RIGHT. I READ THIS.

>> YES, SIR. >> RICK'S CONSTRUCTION.

WILL BE AWARDED THE BID. RICK'S CONSTRUCTION.

>> WE NEED A MOTION ON THAT NOW. >> YES.

>> ANY COMMENTS FROM THE COUNCIL? I'LL ACCEPT A MAJOR LEAGUES AND A SECOND.

>> SO MOVED. >> WE HAVE A MOTION BY MAYOR PRO

TEM HURT. >> SECOND.

>> SECOND BY COUNCIL MEMBER PRICE? ANY DISCUSSION? WE ARE READY TO VOTE.

>> MAYOR PRO TEM HURT? >> YES.

>> COUNCIL MEMBER MCALISTER IN. >> YES.

>> COUNCIL MEMBER CRAVER? >> YES.

>> COUNCIL MEMBER PRICE? >> YES.

>> COUNCIL MEMBER BEARD? >> YES.

[13. Ordinance (Final Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Authorizing the Issuance of City of Abilene, Texas Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2023 for Street Projects (Mike Rains)]

DEPUTY PRO TEM MAYOR ALBUS? >> YES.

MAYOR WILLIAMS? >> YES.

>> WE WILL MOVE TO NUMBER 13 RIGHT NOW.

>> ITEM NUMBER 13 AND 14 ARE COMPANION ITEMS. THEY ARE BOTH ISSUANCES OF BONDS.

ITEM NUMBER 13 IS FOR THE CERTIFICATES OF ONLY IMAITIONS.

THEY ARE GOING TO BE UTILIZED FOR THE CYBERSTREET SCAPE PROJECT. WE ANTICIPATE THESE WILL BE REPAID BY THE PROCEEDS EVERY YEAR.

WE HAD THE PRICING ON THESE BONDS.

THE TOTAL WOULD BE $7.6 MILLION. THE PRICING TOOK PLACE YESTERDAY. AND WE HAVE GEORGE WILFORD WITH HILLTOP SECURITIES HERE TO GO OVER THE PRICING OF THAT.

>> MAYOR AND MEMBERS OF THE COUNCIL, IT IS A PLEASURE TO BE BACK AND FOR THE RECORD, GEORGE WILFORD WITH HILLTOP, AS MIKE SAID. EACH OF YOU SHOULD HAVE THIS BOOK. I APOLOGIZE THAT IT WAS JUST PRODUCED LATE YESTERDAY AFTER THE SALE.

IT WAS NOT AVAILABLE FOR THE OVERHEAD.

IT SUMMARIZES BOTH THER IS FYFE CATS AND THE GENERAL OBLIGATION BONDS. ITEM 13 AND 14.

I'LL REVIEW BOTH OF THOSE QUICKLY.

SO THAT-- FOR YOUR CONSIDERATION.

ON THE COVER, I WOULD LIKE TO POINT OUT, THOUGH, AT THE BOTTOM, IT SHOWS THAT THE TWO VERY GOOD RATING LEVELS OF THE CITY WERE AFFIRMED BY MOODY'S. IN PARTICULAR, AT AA PLUS.

THE CITY CAN TAKE PRIDE IN THOSE RATING LEVELS.

BEHIND TAB A IS INFORMATION REGARDING THE GENERAL OBLIGATION BONDS. THE FIRST PAGE IS JUST A COPY OF THE PRELIMINARY OFFICIAL STATEMENT.

THE OFFERING DOCUMENT THAT WAS PROVIDED TO INVESTORS BY THAT.

YOU WILL NOTICE THAT THE UNDERWRITERS FOR THE ISSUE WERE FROST BANK. ALSO SAM CO., A DALLAS-BASED FIRM. ON PAGE THREE BEHIND THAT IS REALLY THE ESSENCE OF THE ISSUE ITSELF.

YOU WILL NOTICE IT IS TITLED "SOURCES AND USES OF FUNDS." THE PAR AMOUNT OF THAT ISSUE, THE G.O. ISSUE WILL BE $7,320,000. BECAUSE OF THE COUPONING VERSUS YIELDS, IT PRODUCES PREMIUM, AS WE HAVE DISCUSSED IN THE PAST.

AND SO THAT AMOUNT WILL PRODUCE AS IT SHOWS FOR PROJECT FUNDS, THE FULL $8 MILLION THAT WAS AUTHORIZED BY THE VOTERS.

ALL OF THAT MONEY WILL BE AVAILABLE APART FROM ANY COST OF ISSUANCE AND SO ON FOR THE ACTUAL FIRE STATION PROJECT.

THE EFFECTIVE INTEREST RATE YOU WILL SEE FOR THE ISSUE WAS 3.748%. I WI WAS TRYING TO PREPARE YESTERDAY BECAUSE THE COMMON QUESTION IS, WELL, HOW DOES THAT COMPARE WITH OUR ISSUE LAST YEAR? YOU SAW $24 MILLION. AGAIN, 20-YEAR REPAYMENT VIRTUALLY IDENTICAL STRUCTURE. WHAT SHOCKED ME, AND MIKE AND I

[00:25:03]

TALKED ABOUT. THIS THE INTEREST RATE LAST YEAR WAS 3.748%. I DON'T THINK I HAVE SEEN THAT OCCUR FROM YEAR TO YEAR WHERE VIRTUALLY IDENTICAL EFFECTIVE RATE OCCURRED. THE DEBT SERVICE ON THAT ISSUE WILL BE AROUND $58,000 $580,000 PER YEAR.

AS IT SHOWS ON THE PAGE. BEHIND ITEM B, AGAIN, THE FIRST PAGE IS THE COPY OF THE PRELIMINARY OFFICIAL STATEMENT COVER. IF YOU WILL TURN TO PAGE 8 WHICH IS THE SECOND PAGE BEHIND THAT, IT IS THE SOURCES AND USES ASSOCIATED WITH THIS ISSUE. YOU WILL SEE THE PAR AMOUNT IS $7,255,000. AND AROUND THE MIDDLE OF THE PAGE, AGAIN, IT SHOWS PROJECT FUNDS.

THE ACTUAL MONEY AVAILABLE FOR THE PROJECT FROM THE C.O.'S WILL BE $7,608,000 AND THE EFFECTIVE RATE ON IT, BECAUSE THERE IS A LITTLE BIT OF DIFFERENCE IN THE WAY THE COUPONS VERSUS YIELDS WERE STRUCTURED. SLIGHTLY LOWER.

3.700%. VERY CLOSE.

THIS ISSUE, AND THE REASON WE HAVE THAT ODD PROCEEDS AMOUNT, WE STRUCTURED IT SO THAT THE ANNUAL DEBT SERVICE WOULD BE $550,000 OR AS CLOSE THERETO AS WE COULD MAKE IT.

BECAUSE THAT WAS WHAT WAS COMMUNICATED AS THE AMOUNT OF REVENUES THAT WOULD BE AVAILABLE YEAR TO YEAR.

AND SO THAT WAS OUR CONSTRAINT AND WHAT GUIDED OR DICTATED THE SIZING. BUT AGAIN, $7.6 MILLION WILL BE THE AVAILABLE PROCEEDS. I WON'T GO INTO DETAIL, BUT BEHIND TAB C, IS INFORMATION ABOUT THE INTEREST RATE MARKET.

AND WE HAVE THE TYPICAL BOND BUYER INDEX GOING BACK 20 OR MORE YEARS GRAPHICALLY AND ALSO ON A TABLE.

THE FIRST PAGE BEHIND THAT GOES BACK TO AUGUST.

AND IT IS WHAT IS DAILY MUNICIPAL MARKET DATA RATES FOR TEN AND 20-YEAR MATURITIES. YOU WILL SEE SINCE LAST AUGUST, RATES RAN UP IN OCTOBER AND THEN DROPPED BACK DOWN AND THEN AGAIN IN FEBRUARY BACK UP, AND I WAS TELLING MIKE EARLIER, EVERY DEAL THAT HAS SOLD SINCE LITERALLY LATE JANUARY, THE BUZZ WORD WHEN YOU GET ON THE PHONE WITH UNDERWRITERS AND ALL IS VOLATILITY. AS YOU ALL WATCH THE STOCK STOCD THE FINANCIAL MARKETS, YOU HAVE SEEN THAT YOURSELF.

THAT IS WHAT WE HAVE DEALT WITH. I THINK IT IS TIMELY THAT THE CITY WAS ABLE TO SELL NOW WHEREAS NEXT WEEK, THE FEDERAL RESERVE IS MEETING, AND THAT BRINGS SOME UNKNOWNS.

SO WE HAVE THIS PUT AWAY. AGAIN, A RATE IDENTICAL, LITERALLY, TO WHAT WAS ACHIEVED LAST YEAR.

WITH THAT, I'LL BE GLAD TO ANSWER ANY QUESTIONS.

THEN SAM GILL, THE CITY'S BOND COUNSEL IS HERE AS WELL.

>> COUNCIL, ANY QUESTIONS FOR SAM PRIOR TO THE PUBLIC HEARING?

ROBERT? >> MAYOR, I WANT TO THANK YOU FOR YOUR SERVICE TO OUR COMMUNITY.

THE PUBLIC DOESN'T ALWAYS KNOW WHAT YOU ALL DO.

YOU ARE AN IMPORTANT PART OF CONSTRUCTING PUBLIC PROJECTS.

I WANTED TO THANK YOU FOR WHAT YOU DO AND HOW YOU DO IT AND THE MANNER IN WHICH YOU CONDUCT YOURSELVES.

I WOULD LIKE TO SAY ON THE C.O. ISSUANCE, FOR THE IMPROVEMENTS, ONE OF THE REASONS WHY WE STRUCTURED IT THAT WAY, WAS SO THAT WE WERE CERTAIN THAT WE WOULDN'T END UP NEEDING TO USE GENERAL REVENUES TO PAY FOR THESE BONDS.

WE ARE USING TERS REVENUES FOR THIS.

THE IMPROVEMENTS BEING MADE ARE BEING MADE WITHIN THE DISTRICT BY THE REVENUE GENERATED BY THE DISTRICT.

SO THERE IS NO GENERAL TAX DOLLARS OR GENERAL REVENUE FUNDS BEING USED TO PAY FOR THESE BONDS.

PRELIMINARY TAX VALUES RECEIVED YESTERDAY INDICATE WE ARE PROBABLY GOING TO GET AROUND $1.1 MILLION IN TERS REVENUE FOR FISCAL YEAR 2024. WE ARE WELL UNDER THE DEBT SERVICE REQUIREMENTS FOR THIS ISSUANCE.

THAT GIVES ME THE CONFIDENCE WE WILL BE ABLE TO MAIN THAIN THAT THROUGHOUT THE LIFE OF THESE BONDS.

>> I'M GOING TO ADD TO THAT. THAT WAS 41 YEARS AGO.

THIS FALL. THAT ABILENE BECAME THE FIRST MUNICIPALITY IN THE STATE TO HAVE WHAT WAS THEN REFERRED TO AS A TIF. SAME MODEL.

LY TRY TO EXPLAIN THIS. ARTICULATE THIS WELL.

IT LOOKS AT DESIGNATED PARCELS OF LAND.

IT LOOKS AT THE EVALUATION OF THOSE PARCELS OF LAND.

IT FREEZES THAT. ANY INCREMENT OVER THAT SAID AMOUNT THEN IS REINVESTED IN THAT DESIGNATED AREA.

[00:30:02]

AND IT IS APPROVED BY MEMBERS OR APPOINTED BY THE COUNCIL.

MANY OF US MARVEL AT DOWNTOWN ABILENE TODAY, BUT THERE WAS A TIME WHERE WE HAD SHEET METAL BUILDINGS, VACANT BUILDINGS.

NOTHING OCCURRED IN DOWNTOWN ABILENE AFTER ABOUT 5:00.

NOT FOR THE TIF, 41 YEARS AGO, AND THAT TIF EXPIRED, SUNSETTED IN 2007. FOR 5 YEARS,-- FOR 25 YEARS, THAT TIF WAS USED TO ELEVATE DOWNTOWN ABILENE.

WE HAVE SEEN THE BENEFITS. SO TO BE CLEAR, THIS TERS IS USING INCREMENTS ABOVE THAT FROZEN AMOUNT TO BE USED IN THAT AMOUNT, AND SO WE ARE NOT USING GENERAL FUNDS.

WE ARE NOT USING MONEY THAT COULD BE USED FOR OTHER THINGS.

IIT IS DESIGNATED FOR THE OPPORTUNITY TO ELEVATE THAT AREA. WE WILL LOOK BACK, I THINK,-- I MAY NOT BE HERE. WELL, I AM GOING TO BE THERE.

40 YEARS DOWN THE ROAD. (LAUGHTER) WE WILL SEE A SIMILAR BENEFIT. THANKS FOR ALL THE GOOD WORK.

ANY COMMENTS FROM THE COUNCIL PRIOR TO THE PUBLIC HEARING?

>> I JUST WANT TO MAKE ONE CLARIFICATION.

THIS IS ITEMS 13 AND 14 AND 14, THE NUMBERS WERE FOR 14 FIRST AND THEN THE SECOND NUMBERS WERE FOR 13.

JUST FOR CLARIFICATION. >> THAT IS OUR MAYOR PRO TEM THERE. I WILL TELL YOU.

ANY MORE PUBLIC COMMENTS PRIOR TO THE PUBLIC HEARING?

>> AT THIS TIME, I WILL OPEN UP THE PUBLIC HEARING.

IS THERE ANYONE THAT WOULD LIKE TO SPEAK EITHER FOR OR AGAINST THIS ITEM, IF SO, PLEASE COME FORWARD AND GIVE YOUR NAME FOR

THE RECORD. >> I'M RYAN GOODWIN.

I AM A CITIZEN OF ABILENE. I THINK MOST OF YOU ALL KNOW THAT. SO LOOKING AT THIS, 1 AND 14, WHAT WAS JUST BROUGHT FORWARD TODAY, WHAT SUBSTANCE DOES IT HAVE, IN EFFECT? THE CITIZENS HAVEN'T GOTTEN TO LOOK AT THE PACKET YOU JUST RECEIVED.

IF THIS CAME OUT LAST NIGHT, WITH NEW INFORMATION WITH 13 AND 14, I UNDERSTAND YOU ARE TRYING TO BEAT THE CLOCK.

AND GET THIS DONE. WHAT INFORMATION IS THERE? HAVE THE CITIZENS HAD A CHANCE TO LOOK AT IT ALL TO BE ABLE TO HAVE A VOICE AND SHARE WHAT THEY BELIEVE AND HAVE AN OPPORTUNITY TO COME UP HERE AND SPEAK. I APPRECIATE HOW WELL YOU DID WITH THE TAX INCREMENT REINVESTMENT ZONE.

THE ONE THING TO MENTION, THOUGH, WHEN WE FREEZE IT, YOU KNOW, THE POLICE DEPARTMENT COMES OUT OF A LOT OF THAT EX EXTRA, THE GENERAL BUDGET, AND THE TERS GOES STRAIGHT DIRECTLY TO DOWNTOWN. I LIKE THE TAX INCREMENT REINVESTMENT ZONE A LOT. WHEN WE CONSIDER THE STREETS IN THE MIDDLE OF IT. AND KNOWING THAT THE TAX REININVESTMENT ZONE, THAT IS MONEY THAT IS USUALLY TAKEN OUT OF THE GENERAL BUDGET IN A LOT OF CASES.

TO FIX SOME STREETS. SO FAR AS 13 OR 14, I JUST WAS CURIOUS WHAT WAS IN THAT PACKET THAT COULD HAVE CHANGED THOSE CONVERSATIONS. AND WHAT EVERYBODY HASN'T GOTTEN

TO SEE. >> I THINK I WILL LET OTHERS WEIGH IN, MIKE, AND/OR ROBERT. SO FORECASTS ARE DONE IN PROJECTING WHAT THE FINANCIALS WILL LOOK LIKE AND WHAT OCCURRED YESTERDAY IN THE MARKET WAS A VALIDATION, AFFIRMATION OF THE PROJECTION. WHAT THEY LOOK LIKE.

AND OF COURSE, THE MARKET IS AND-- THE MARKET EBBS AND FLOWS.

WE DON'T WANT TO COMMIT OURSELVES TO THE UNKNOWN.

SO IT IS-- IF SOMETHING WOULD HAVE APPEARED THAT WAS OUTSIDE OF THE FORECASTED PARAMETERS FINANCIALLY, A DIFFERENT CONVERSATION. YOU WANT TO ADD TO THAT?

>> MAYOR, THE ONLY THING IS-- THE THING CONTAINED IN THIS BINDER IS SIMPLY THE NUMBERS ASSOCIATED WITH THE DEBT ISSUANCE. YOU GO TO THE BANK AND GET A LOAN, RIGHT? YOU GET A DOCUMENT THAT SAYS "HERE IS WHAT YOU ARE GETTING YOUR LOAN FOR.

HERE IS YOUR INTEREST RATE. HERE IS YOUR PAYMENT." THAT IS WHAT THIS DOCUMENT IS. THERE IS NO REALLY, THERE IS NO SECRET KNOWLEDGE. THIS IS PUBLIC RECORD NOW.

IT IS AVAILABLE TO ANYBODY WHO WANTS IT AND WILL BE ON FILE AT THE CITY SECRETARY'S OFFICE. BUT THE WAY THE BOND ISSUANCES WORK IS OFTENTIMES, THE SELL OF THAT DEBT IS DONE AT THE LAST POSSIBLE MOMENT. ESPECIALLY IF THE MARKETS ARE FAVORABLE TOWARDS THAT END. IF RATES ARE COMING DOWN, YOU WANT TO TRY TO CAPTURE THE BEST POSSIBLE RATE YOU CAN.

SOMETIMES YOU CAN DO A NEGOTIATED SALE.

WE DID NOT DO THAT IN THIS CASE. THAT IS RIGHT, GEORGE? CORRECT? WE WENT STRAIGHT TO THE MARKETS.

AND THIS IS JUST HOW IT WORKS. IT IS NOT UNUSUAL TO HAVE WHAT IS YOUR INTEREST RATE, WHAT IS YOUR PAYMENT GOING TO BE THE DAY OF THE MEETING? WAY BACK IN THE DAY, THEY USED TO DO IT LIVE. THEY WOULD SET UP A CALL.

THE BOND COUNCIL WOULD COME. IN THEY WOULD DO A LIVE IN THE MIDDLE OF A COUNCIL MEETING. THAT WAS KIND OF AN AWKWARD AND INTERESTING EXPERIENCE. WITH ELECTRONIC MEDIA NOWADAYS,

[00:35:01]

WE DON'T HAVE TO DO THAT ANYMORE.

>> THE MORE PERTINENT QUESTION IS THE FORECAST OF THE ANTICIPATED REVENUE FROM THE DISTRICT BEING ABLE TO SATISFY THE EXPECTATION OF REPAYMENT. AND YOUR EL VALUATION THAT THERE IS MORE THAN ENOUGH THAT WILL BE ABLE TO MEET THIS OBLIGATION.

IS THAT CORRECT? >> THAT IS ALSO THE MARKET'S EVALUATION. INDICATIVE IN THE RATE.

THE RATE IS LOWER. PART OF THE WAY IT IS STRUCTURED. IT IS INTERESTING TO ME THAT THE RATE IS LOWER THAN THE GENERAL OBLIGATION BONDS.

THE RISK IS LESS TOO, MAYBE. IT IS INTERESTING.

>> WE ARE STILL IN THE PUBLIC HEARING.

DOES ANYBODY ELSE WANT TO SPEAK FOR OR AGAINST THIS ITEM?

>> WHAT IS THE RATING ARRIVED AT?

>> LET'S DO THIS FIRST FOR THE PUBLIC.

THEN WE WILL-- ANYBODY ELSE WANT TO SPEAK FOR OR AGAINST THIS ITEM? SEEING NO ONE, I'LL CLOSE THE

PUBLIC HEARING. >> SAME QUESTION.

>> YES, MA'AM. THE RATING IS A VERY INTEGRAL PART OF WHAT WE DO. SO EVERYBODY IN THE ROOM HAS A CREDIT SCORE. RIGHT? OUR RATING, OUR BOND RATING IS THE CITY'S CREDIT SCORE.

A AA PLUS OR AA-2 IS THE SECOND BEST CREDIT STORE-- SCORE.

IF AN 850 IS THE BEST YOU CAN GET, THAT WOULD BE A AAA.

THERE ARE COMMUNITIES THAT HAVE A AAA BOND RATING.

THEY ARE NOT-- THEY ARE FEW AND FAR BETWEEN.

YOU LOOK AT THE TOTALITY OF CITIES AND RATINGS.

A AA-2 IS AN EXCELLENT RATING FOR THE CITY OF ABILENE.

WE HAVE HAD THAT RATING FOR A NUMBER OF YEARS.

WE HAVE WORKED HARD TO MAINTAIN THAT RATING.

IN THE RECENT, THE RECENT ISSUANCE OF THESE BONDS, EVERY TIME WE GO TO ISSUE DEBT, WE DO A RATINGS CALL.

SO WE HAVE TO ARTICULATE THE STATUS OF THE COMMUNITY, THE LEVEL OF OUR ECONOMY, NEW THINGS THAT HAVE CHANGED SINCE THE LAST RATINGS CALL WAS DONE, AND IT IS A VERY-- HONESTLY, IT CAN BE A VERY STRESSFUL PROCESS. YOU PUT THE WHOLE COMMUNITY'S ECONOMY UNDER A MICROSCOPE WITH THESE TWO RATING AGENCIES.

AND THEIR JOB IS TO TESTIFY TO THE MARKET THAT THIS IS A GOOD BET. THIS IS A SAFE INVESTMENT.

AA-2 AND AA-PLUS RATINGS ARE EXCELLENT RATINGS.

THEY MAY NOT BE AAA. AND WE MAY NEVER ACTUALLY GET TO HAVE A AAA BECAUSE OF THE REALITY OF THE ECONOMY.

WE ARE KIND OF OUT HERE IN THE WEST TEXAS PRAIRIE ALL BY

OURSELVES. >> WE HAD OTHER CITIES AND LARGE INSTITUTIONS AROUND US, I THINK WE WOULD BE ELIGIBLE FOR A AAA.

OUR FINANCES CERTAINLY INDICATE THAT.

ONE OF THE THINGS THAT WAS MENTIONED IN THE RATINGS IS A STRONG MANAGEMENT AND A STRONG FINANCIAL PRACTICES OF THIS ORGANIZATION. YOUR CITY OF ABILENE EXHIBITS-- AND THE MANAGEMENT OF THE CITY AND HOW THEY BUDGET DOLLARS AND THE CONSERVATIVE NATURE THAT THEY USE IN FORECASTING REVENUE AND SPENDING PUBLIC DOLLARS. I'M PROUD OF THOSE THINGS.

I WISH EVERY CITIZEN WOULD READ THOSE AGENCY REPORTS.

IT IS A GOOD SEAL OF APPROVAL OF HOW THIS COUNCIL HAS RUN THIS ORGANIZATION AND HANDLED THE FINANCES FOR THIS COMMUNITY.

THAT IS A SHAMELESS PLUG, DON. I'M SORRY.

(LAUGHTER). >> ONE OF THE GREAT THINGS ABOUT THIS CITY IS THAT WE HAVE FOLKS WORKING FOR US LIKE SAM AND GEORGE AND MICHAEL WHO REALLY HAVE DONE THEIR HOMEWORK AND KNOW THIES AND OUTS YOU TALK ABOUT WHAT A GREAT JOB THEY HAVE DONE. I WISH THE CITIZENS OF ABILENE REALLY KNOW THE GREAT JOB THAT THEY DO.

I HAVE CONFIDENCE IN THEM THAT THEY ARE DOING WHAT'S BEST FOR THE TAXPAYERS IN THIS CITY, AND I WISH PEOPLE WOULD UNDERSTAND THAT. I KNOW THAT IS A LOT OF STUFF TO WADE THROUGH IF YOU ARE NOT A NUMBERS PERSON.

I HAVE GREAT CONFIDENCE IN THIS GROUP OF INDIVIDUALS.

>> ANY MORE COMMENTS FROM THE COUNCIL? I WILL ALSO ADD, YOU KNOW, DOWNTOWN IN 2016, 2017, AN IN-DEPTH STUDY WAS DONE THAT LOOKED AT HOW WE CAN LEVERAGE ABLEAN'S ECONOMY-- ABILENE'S ECONOMY IN THE FUTURE.

ONE OF THE ITEMS IDENTIFIED INVESTING IN THE DOWNTOWN AREA AND WHAT IT WOULD DO FOR ABILENE IN REGARDS TO ATTRACTING AND MAINTAINING ECONOMIC OPPORTUNITIES.

SO STRATEGICALLY, THIS BODES WELL WITH THINGS WE HAVE TALKED ABOUT AS A COMMUNITY. FOR A NUMBER OF YEARS.

AND WITH THAT, I'LL TAKE A MOTION AND A SECOND.

UNLESS THERE IS ANY OTHER COMMENTS.

>> SO MOVED. >> SO WE HAVE TO HAVE SPECIAL

WORDING. >> YES, SIR.

>> I MOVE FOR APPROVAL-- WE HAVE A MOTION BY COUNCIL MEMBER

BEARD. >> I MOVE FOR APPROVAL OF THE ORDINANCE AUTHORIZING THE ISSUANCEOS OF THE COMBINATION LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION,

SERIES 2023 FOR STREET PROJECTS. >> SECOND.

>> WE HAVE A SECOND BY COUNCIL MEMBER MCALISTER.

>> YES. >> ANY COMMENTS?

WE ARE READY TO VOTE. >> COUNCIL MEMBER BEARD?

>> YES. DEPUTY MAYOR PRO TEM ALBUS?

[00:40:02]

>> YES. COUNCIL MEMBER MCALISTER?

>> YES. COUNCIL MEMBER PRICE?

[14. Ordinance (Final Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Authorizing the Issuance and Sale of City of Abilene, Texas General Obligation Bonds, Series 2023 for Fire Department Projects (Mike Rains)]

>> YES. >> MAYOR WILLIAMS?

>> YES. >> MOTION CARRIES.

>> NEW NUMBER 14. WE WILL TALK ABOUT THE COMPANION

ITEM FOR CONSIDERATION TODAY. >> THE DIRECTOR OF FINANCE AGAIN. THIS IS THE SECOND ISSUANCE WE HAVE. THE GENERAL OBLIGATION BONDS.

THESE WERE APPROVED BY VOTERS IN THE NOVEMBER ELECTION FOR $8 MILLION FOR CONSTRUCTION OF NEW FIRE STATION NUMBER 9 ON THE SOUTH SIDE OF TOWN. DEBT SERVICE FOR THESE BONDS WILL BE FUNDED FROM THE AD VALOREM TAX AND GEORGE PRESENTED THAT EARLIER, TOO. WE WILL HAVE $8 MILLION IN PROCEEDS. I WOULD BE HAPPY TO ANSWER ANY

QUESTIONS. >> QUESTIONS OF MR. RAINS PRIOR

TO THE PUBLIC HEARING? >> THANK YOU.

AT THIS TIME, I WILL OPEN UP THE PUBLIC HEARING.

IS THERE ANYONE THAT WOULD LIKE TO SPEAK EITHER FOR OR AGAINST THIS ITEM? IF SO, PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD. SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING. THERE IS SPECIAL VERBAGE.

IS THERE A MOTION? >> MOVE FOR APPROVAL.

>> MOTION FROM COUNCIL MEMBER PRICE.

>> MOVE FOR APPROVAL OF THE ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF ABILENE, TEXAS GENERAL OBLIGATION BONDS, SERIES 2023 FOR FIRE DEPARTMENT PROJECTS.