Title
Conduct a public hearing and consider approving an ordinance on first and final reading with caption reading: ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF PFLUGERVILLE, TEXAS COMBINATION TAX AND LIMITED REVENUE CERTIFICATES OF OBLIGATION, SERIES 2016B; AUTHORIZING THE LEVY OF AN AD VALOREM TAX AND THE PLEDGE OF CERTAIN NET REVENUES IN SUPPORT OF THE CERTIFICATES; APPROVING AN OFFICIAL STATEMENT, A PURCHASE AGREEMENT AND A PAYING AGENT/REGISTRAR AGREEMENT; AND AUTHORIZING OTHER MATTERS RELATED TO THE CERTIFICATES
Summary
The proposed certificates of obligation will be used to reimburse the developer for projects constructed by the developer in the Tax Increment Reinvestment Zone (TIRZ). The total amount of obligations issued, including issuance costs, will not exceed $6,300,000.
The attached ordinance has been prepared by bond counsel. The pricing terms of the certificates will be finalized and incorporated into the ordinance on June 28th after the obligations have been priced. Moody's Investor Services and S&P Global Ratings have both assigned ratings on this debt issuance. Moody's has maintained the City's A1 rating and S&P has maintained the City's AA rating.
Mr. Spencer Day with Hilltop Securities, the City's financial advisor, and Mr. Bart Fowler with McCall, Parkhurst, and Horton, City's bond counsel, will be in attendance to answer any questions that City Council may have.
Prior City Council Action
On May 10, 2016, the City Council approved a Notice of Intent Resolution for this issuance of Certificates of Obligation, Series 2016B. On June 14, 2016, the City Council approved a draft of the Preliminary Official Statement. A tentative financing schedule is attached to this agenda item.
Deadline for City Council Action
In order to close on the bonds and receive the funds by July 27, 2016, this public hearing must be held and the ordinance must be adopted on June 28, 2016.
Fiscal Impact
The TIRZ related bonds will not affect the City's property tax rate as those certificate of obligation bonds will be funded by the annual TIRZ increment.
Staff Recommendation
Conduct the public hearing and consider the ordinance on first and final reading to award sale of certificates.
Drafter
Lauri Gillam
Assistant City Manager