Agenda No. 11.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | June 7, 2022 |
| Department: | Finance |
| Subject: | Resolution 22-R-54 - Consideration and approval of a Resolution by the City Council of the City of Schertz, Texas authorizing and approving publication of Notice of Intention to issue Certificates of Obligation, complying with the requirements contained in Securities and Exchange Commission Rule 15c2-12; and providing an effective date. (M. Browne/J. Walters) |
BACKGROUND
The Resolution only alerts the Citizens that the proposed projects will be considered and Certificates of Obligation (the “Certificates”) will be approved on August 2, 2022. The City intends to issue the Certificates in an amount not to exceed $19,855,000 for the purpose of making street and drainage repairs and improvements to the City’s utility system including water projects. The authorization of the Resolution will not have a fiscal impact. When the CO’s are approved, along with the GO Bond, it is estimated that there will be no impact on the I&S tax rate or require a utility rate increase relative to the portion of Certificates sold for making utility system improvements.
Projects included are:
FM1518 Road Improvements: $5,605,000
Main Street Improvements: $3,250,000
Northcliffe AC Pipe Replacement: $2,000,000
Live Oak Water Transmission Main: $4,000,000
FM1518 Utility Relocation: $5,000,000
Total: $19,855,000
This notice allows the Citizens 45 days after publication to put together a petition with 5% of registered voters to stop the sale of these bonds. If the petition succeeds, the bonds can be moved to the next ballot to be voted on.
Projects included are:
FM1518 Road Improvements: $5,605,000
Main Street Improvements: $3,250,000
Northcliffe AC Pipe Replacement: $2,000,000
Live Oak Water Transmission Main: $4,000,000
FM1518 Utility Relocation: $5,000,000
Total: $19,855,000
This notice allows the Citizens 45 days after publication to put together a petition with 5% of registered voters to stop the sale of these bonds. If the petition succeeds, the bonds can be moved to the next ballot to be voted on.
GOAL
To provide funding for necessary improvements to roadways and the water system in the City of Schertz.
COMMUNITY BENEFIT
The community will benefit from better traffic flows from the road improvements along FM 1518 and the water line upgrades will ensure a reliable source of water for the citizens and businesses.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approving the Resolution, publishing the Notice of Intention, and to authorize the consultants to move forward with the issuance of the Certificates (along with the Bonds) scheduled to sell on August 2nd with funds delivered on August 24, 2022.
Motion: I move that the City Council adopt a Notice of Intention Resolution
Motion: I move that the City Council adopt a Notice of Intention Resolution
FISCAL IMPACT
The issuance amounts are within the current tax rate's capacity and should not require a tax rate increase.
RECOMMENDATION
Approval of resolution 22-R-54 approving the notice of intent to sell bonds.
Motion: I move that the City Council adopt a Notice of Intention Resolution
Motion: I move that the City Council adopt a Notice of Intention Resolution