To align with the Capital Improvements Plan (CIP), the City needs to issue debt to finance essential improvement projects across the community. These bonds will fund necessary roadway development and expansion, water line replacements and storage tanks, and facility renovations to meet the space needs of the Police Department. Current recommended projects include: 

2024 and 2025 Streets Preservation and Maintenance Projects (SPAM) projects including Kramer Farms, Boenig, and Buffalo Valley South rehabilitations
Main Street improvements
FM 78 County Building build out for use by Schertz Police
Replacing the Generator at the East Live Oak pump station 
Elevated Storage Tank Pipe replacement
Schertz Parkway 16" Replacement waterline
IH 35 NEX Utility Relocations-North Section
FM 3009 18' Transmission Line Replacement
IH 35 Ground Storage Tank and Pumping Station
Moonlight Meadow Drive water line replacement
Robin Hood Way Line Replacement
Greenshire Subdivision water main replacement
Northcliffe County Club Line replacement
IH 35 Dedicated Water Transmission main

One notable change from the CIP is the acceleration of debt issuance for the Main Street project. Originally, the plan was to issue $1.3 million this year and $14.8 million in 2026. However, staff now recommends issuing the entire amount upfront to avoid construction delays caused by splitting the funding over two years. The debt payment schedule will be adjusted to reflect this increase while maintaining the current tax rate.

The total bond sale is projected to be $56,314,981, with $28,690,057 allocated for the General Fund and $27,624,924 for the Water & Sewer Fund.

To sell Certificates of Obligation Bonds (CO), the City Council must approve publishing a Notice of Intent in the official paper for two consecutive weeks. If no petition is received within 30 days of the notice, the City Council may review the bond sale on July 15, 2025. If a petition is received, the bond sale will be put to a vote in the next election instead of being sold.

This resolution does not guarantee that the debt will be issued. The Council may modify the debt amounts or cancel the sale at any time before acceptance. This resolution solely serves to post notice of a potential debt issuance later this year as required by law when issuing certificates of obligation.

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

These funds will enhance the quality of life in the city by alleviating traffic congestion, providing smoother driving surfaces, and improving the overall appearance and feel of Schertz. Additionally, these projects will upgrade the water infrastructure in the city, ensuring reliable utility services for residents. More office space is needed to accommodate the current and future staffing needs of the Police Department.

To approve resolution 25-R-057 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 CO 2019 and the CO 2024 bonds, and use of restricted Interest & Sinking Reserves. Estimated debt service would be $2,150,000.

The water debt payment amounts are estimated to be $2,075,000 and were already considered in the 5-year-rate model done last year. This rate model will be updated for the Council's consideration on fees this year during the budget adoption process in August 2025.

Amounts listed are estimates only and subject to change by the sale date.

Staff recommends approval of Resolution 24-R-057