Agenda No. 7.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | June 2, 2026 |
| Department: | Finance |
| Subject: | Resolution 26-R-072 - Authorizing a Notice of Intention to Issue Bonds (S. Gonzalez/J.Walters) |
BACKGROUND
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, generator replacements, and drainage improvements. Current recommended projects include:
Lower Seguin Road Improvements: $3,200,000
Annual Street Preservation & Maintenance (SPAM): $1,488,400
Northcliffe Country Club Estates Rehabilitation: $1,701,600
Savannah Drive Mill and Overaly: $1,460,000
Generator for Community Center/Building 1: $300,000
Generator for Public Safety Complex: $600,000
Wendy Swan Drainage Improvements: $1,100,000
The total bond sale is proposed to be $9,850,000, with $8,750,000 allocated for the General Fund and $1,100,000 for the Drainage 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 August 4, 2026. 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.
Lower Seguin Road Improvements: $3,200,000
Annual Street Preservation & Maintenance (SPAM): $1,488,400
Northcliffe Country Club Estates Rehabilitation: $1,701,600
Savannah Drive Mill and Overaly: $1,460,000
Generator for Community Center/Building 1: $300,000
Generator for Public Safety Complex: $600,000
Wendy Swan Drainage Improvements: $1,100,000
The total bond sale is proposed to be $9,850,000, with $8,750,000 allocated for the General Fund and $1,100,000 for the Drainage 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 August 4, 2026. 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.
GOAL
To get approval to issue the notices advertising the potential sale of new debt by the City.
COMMUNITY BENEFIT
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 improve drainage around Wendy Swan Memorial Park and provide reliable energy in emergency for City Buildings.
SUMMARY OF RECOMMENDED ACTION
To approve resolution 26-R-072 authorizing the publication of the notice of intent to issue certificates of obligation.
FISCAL IMPACT
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.
General Fund: $675,900
Drainage: $75,000
Total Debt Service: $750,900
Amounts listed are estimates only and subject to change by the sale date.
General Fund: $675,900
Drainage: $75,000
Total Debt Service: $750,900
Amounts listed are estimates only and subject to change by the sale date.
RECOMMENDATION
Staff Recommends approval of Resolution 26-R-072