As stated in the June 4, 2024 Council meeting, it is the City’s intent to issue Certificates of Obligation Bonds (CO) in the 2024 year for street maintenance projects. These bonds will address needed roadway development and expansion along with improving quality of life within the city. Current recommended projects include Lower Seguin Road and Main Street Improvements.

The City must strictly adhere to the bond language when expending these funds and cannot be used for purposes other than roadway improvements.

In order to sell Certificates of Obligation Bonds (CO), City Council must approve to publish a Notice of Intent in our paper of record for two consecutive weeks. 30 days after the notice, City Council will review the bond sale on September 3, 2024. Once the projects are ready to begin, Staff will return to council once again to approve the construction contracts and to move forward with these items.

To get approval to issue the notices advertising the potential sale of new debt by the City.

These funds will improve quality of life within the city, both easing traffic flow, providing smoother driving surfaces, and improving the overall look and feel of Schertz.

To approve resolution 24-R-65 authorizing the publication of the notice of intent to issue certificates of obligation.

The proposed new debt payments will not cause an increase in the tax rate. This issuance will use the current funding levels, lower scheduled payments on Refunding 2020 and the CO 2017 bonds, and use of reserves. Estimated first 2 year debt payments are $2.5 million before dropping to $1.35 million annually for 18 years.

Staff recommends approval of Resolution 24-R-65