Title
Resolution - A Resolution Authorizing the City of Mansfield to Enter a Continuing Disclosure Agreement with the Trinity River Authority of Texas for the Purpose of Providing Certain Annual Financial and Operational Information; and for Timely Notices of Occurences of Certain Events in Accordance with Regulations set Forth by the United States Securities and Exchange Commission
Requested Action
Approval of the Resolution authorizing the City of Mansfield, Texas, to enter a continuing disclosure agreement with the Trinity River Authority.
Recommendation
Staff recommends the approval of the Resolution.
Description/History
This agreement warrants that the City will notice Trinity River Authority of any financial event that is reported to the financial markets by the City of Mansfield, Texas.
The City has an agreement with Trinity River Authority to provide sewer service for the City’s population. This is an expensive and highly regulated business: treating sewer. Trinity River Authority, a regional service provider of sewer service, has issued bonds over the years to pay for the cost of its physical plant or facilities to provide this specialized service. In return, customers of Trinity River Authority have agreed to pay Trinity River Authority for the service. Accordingly, the City pays for its usage of the system. Payments by the City as well as other customers of Trinity River Authority have been used to pay for the operational costs and debt cost of the Authority. Trinity River Authority’s existence and financial existence is dependent upon the users of their system.
The City of Mansfield, Texas also has an existing disclosure agreement with the Trinity River Authority for the purpose of noticing Trinity River Authority of financial events that are considered to be material to the municipal bond market (the “Market”). Currently, the United States Securities and Exchange Commission (the “SEC”) regulates the Market with 14 rules. Issuers, like the C...
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