TITLE
A Resolution of the Mayor and Council of the City of Maricopa, Pinal County, Arizona, (1) approving the form and authorizing the execution and delivery of a Second Purchase Agreement, a Second Trust Agreement, a Continuing Disclosure Undertaking, an Obligation Purchase Agreement and other necessary agreements, instruments and documents, (2) approving the sale and execution and delivery of Pledged Revenue Obligations, Series 2026, evidencing a proportionate interest of the owners thereof in the Purchase Agreement; (3) delegating authority to the Mayor, the Manager and the Deputy City Manager/Chief Financial Officer of the City to determine certain matters and terms with respect to the foregoing; and (4) authorizing the taking of all other actions necessary to the consummation of the transactions contemplated by this Resolution. Discussion and Action.
AGENDA ITEM DESCRIPTION
The City will utilize funds received from the issuance of the Pledged Revenue Obligations, Series 2026, to finance the costs of capital projects, comprised of roadway improvements to State Route 347, and related capital improvements, to be constructed in conjunction with the Arizona Department of Transportation, and to pay the costs and expenses relating to the execution and delivery of the obligations. Financing the costs of the Project pursuant to the Purchase Agreement is in furtherance of the purposes of the City and is in the public interest. The total amount that will be received is $30,000,000.00, with the total aggregate principal amount of the Obligations which are to be executed and delivered not to exceed the aggregate principal amount of $27,175,000.00.
Obligations related to the Pledged Revenue Obligations, Series 2026, will be secured by amounts received under the Purchase Agreement pursuant to which the City will pledge Excise Tax Revenues (City Sales Tax) and State Shared Revenues (State Sales Tax, with the exception of Additional Bed Tax amounts already restricted to Tourism, and State Income Tax).
The following proposed forms of: (1) the Second Purchase Agreement; (2) the Second Trust Agreement; (3) a Continuing Disclosure Undertaking; (4) an Obligation Purchase Contract; and (5) the Preliminary Official Statement, relating to the Obligations, which, as to be revised after the sale of the Obligations, shall constitute the Official Statement, are included for Council review.
The City anticipates paying off the bond through revenues received from the Commuting Corridors Fund. We will negotiate the ability to pay off the bond early, depending upon market conditions, and are currently proposing a repayment schedule that would pay down the principal early.
PRESENTER
This item will be presented by Matt Kozlowski, Deputy City Manager & Chief Financial Officer.
STAFF RECOMMENDATION
Staff recommends that the Mayor and City Council approve the Resolution, approving the form and authorizing the execution and delivery of a Obligation Purchase Contract and other necessary agreements, instruments, and documents; (2) approving the sale and execution and delivery of Pledged Revenue Obligations, Series 2026.