Agenda No. 12.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | July 15, 2025 |
| Department: | Finance |
| Subject: | Ordinance No. 25-B-031 - Consideration and approval by the city council of the City of Schertz, Texas authorizing the issuance of “City of Schertz, Texas, Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2025”; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; and other matters incident and related thereto. First & Final Reading (S.Gonzalez/J.Walters/A.Friedman) |
BACKGROUND
The City of Schertz has created and adopted a Capital Improvements Plan that outlines when major capital projects will occur and how they will be funded. This Plan assumes no increase in the tax rate and all debt raised to fund the projects can be funded at the existing rate. Potential projects funded through debt for 2025 include:
Main Street Improvements
2025 Street Preservation and Maintenance projects
Kramer Farm Road Improvements
Boenig, Ware Seguin to Greytown Improvements
Buffalo Valley South Improvements
Build Out of Office Space at the County building on FM 78
Replacement Generator at the East Live Oak pump station
Paving of Grassy areas for City work vehicles and equipment storage
Elevated Storage Tank Pipe replacement
Schertz Parkway 16" Waterline replacement
IH 35 NEX utility relocation
FM 3009 18' Transmission Line replacement
IH 35 Ground Storage Tank and Pump Station
Moonlight Meadow Drive Utility Line replacement
Robin Hood Way Line replacement
Greenshire Subdivision Main replacement
Northcliffe Country Club Line replacement
IH 35 Dedicated Water Transmission Main
The Ordinance authorizes the sale of Obligations for the projects previously proposed and properly noticed subsequent the Notice of Intention Resolution adopted by the Council on May 6, 2025. The Certificates will fund street improvements, utility improvements, and facility improvements in an amount of $56,400,000. As of today, no petition has been filed to push this sale of debt to the November election.
On July 15, 2025, the city received the quote for the sale of the bonds for the council's review. Council may agree to the terms of the sale based on the interest rates offered and adopt Ordinance 25-B-031 or may reject all proposals and cancel the sale of the bonds.
Main Street Improvements
2025 Street Preservation and Maintenance projects
Kramer Farm Road Improvements
Boenig, Ware Seguin to Greytown Improvements
Buffalo Valley South Improvements
Build Out of Office Space at the County building on FM 78
Replacement Generator at the East Live Oak pump station
Paving of Grassy areas for City work vehicles and equipment storage
Elevated Storage Tank Pipe replacement
Schertz Parkway 16" Waterline replacement
IH 35 NEX utility relocation
FM 3009 18' Transmission Line replacement
IH 35 Ground Storage Tank and Pump Station
Moonlight Meadow Drive Utility Line replacement
Robin Hood Way Line replacement
Greenshire Subdivision Main replacement
Northcliffe Country Club Line replacement
IH 35 Dedicated Water Transmission Main
The Ordinance authorizes the sale of Obligations for the projects previously proposed and properly noticed subsequent the Notice of Intention Resolution adopted by the Council on May 6, 2025. The Certificates will fund street improvements, utility improvements, and facility improvements in an amount of $56,400,000. As of today, no petition has been filed to push this sale of debt to the November election.
On July 15, 2025, the city received the quote for the sale of the bonds for the council's review. Council may agree to the terms of the sale based on the interest rates offered and adopt Ordinance 25-B-031 or may reject all proposals and cancel the sale of the bonds.
GOAL
To approve a bond ordinance and improve roadways, utilities, and facilities in the City of Schertz.
COMMUNITY BENEFIT
This sale of bonds is aimed to fund improvements to roadways and utility lines throughout the City, offering better and more reliable services to residents and businesses in Schertz.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of the bond ordinance.
FISCAL IMPACT
When the Certificates of Obligation (CO’s) are approved, it is estimated that there will be no further impact on the city's tax rate. The debt payments are structured to fit within the taxes raised at the existing rate. A presentation on the annual debt service amounts for the General Fund and Water & Sewer Fund will be presented based on the results of the bond sale for Council's consideration.
RECOMMENDATION
Staff recommends approving the Ordinance 25-B-031 authorizing the sale of the Certificates.
Motion: I MOVE THAT THE CITY COUNCIL ADOPT AN ORDINANCE AUTHORIZING THE “CITY OF SCHERTZ, TEXAS, COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2025”
Motion: I MOVE THAT THE CITY COUNCIL ADOPT AN ORDINANCE AUTHORIZING THE “CITY OF SCHERTZ, TEXAS, COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2025”