Agenda No. 6.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 4, 2026 |
| Department: | Finance |
| Subject: | Ordinance 26-B-018 - 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 2026”; 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. (Finance Director James Walters) |
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 2026 include:
Lower Seguin Road Improvements
Street Preservation & Maintenance
Northcliffe Country Club Estates Road Rehabilitiation
Savannah Drive Mill and Overlay Rehabilitiation
Generators for Community Center/Building1 and the Public Safety Complex
Wendy Swan Drainage Improvements
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 June 2, 2026. The Certificates will fund street improvements, utility improvements, and facility improvements in an amount of $9,850,000. As of today, no petition has been filed to push this sale of debt to the November election.
On August 4, 2026, 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 26-B-018 or may reject all proposals and cancel the sale of the bonds.
Lower Seguin Road Improvements
Street Preservation & Maintenance
Northcliffe Country Club Estates Road Rehabilitiation
Savannah Drive Mill and Overlay Rehabilitiation
Generators for Community Center/Building1 and the Public Safety Complex
Wendy Swan Drainage Improvements
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 June 2, 2026. The Certificates will fund street improvements, utility improvements, and facility improvements in an amount of $9,850,000. As of today, no petition has been filed to push this sale of debt to the November election.
On August 4, 2026, 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 26-B-018 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 drainage 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 on $8,750,000 fit within the taxes raised at the existing rate. The Drainage Fund can also pay for its $1,100,000 portion of the debt payments at the existing drainage fee amount. A presentation on the annual debt service amounts for the General Fund and Drainage Fund will be presented based on the results of the bond sale for Council's consideration.
RECOMMENDATION
Staff recommends approving the Ordinance 26-B-018 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 2026”
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 2026”