Title
Approving a resolution with a caption reading: RESOLUTION APPROVING PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING DISTRIBUTION OF SUCH PRELIMINARY OFFICIAL STATEMENT RELATING TO THE CITY'S COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2013, AND LIMITED TAX BONDS, SERIES 2013.
Summary
This resolution is the next step in the process of issuing debt to finance projects approved by the City Council. The City will be issuing $2,000,000 in general obligation (limited tax) bonds for the library expansion and $4,600,000 in certificates of obligation for Pfluger Farm Lane. The library portion of the issuance is the last in a series of issuances that total $7,000,000, the maximum approved by voters in May 2008. The proposed certificates of obligation will be used to design the roadway and utility infrastructure for the entire Pfluger Farm Lane, construct the northern portion extending from Town Center Drive, and construct the water and wastewater infrastructure along the entire roadway (Phase A of the project).
City staff, the City's financial advisor and the City's bond counsel have been updating the official statement which is the informational document that is sent to prospective investors. This resolution will approve the preliminary official statement and authorize its distribution. A copy of the preliminary official statement will be delivered to the City Council prior to this meeting. A copy of the final official statement will be given to each City Councilmember when it is complete.
Prior City Council Action
At the November 13, 2012 City Council meeting, a resolution was approved to begin the process for issuing the Combination Tax and Revenue Certificates of Obligation, Series 2013. There was no action required at that time to complete the issuance of the general obligation bonds for the library project.
Deadline for City Council Action
To meet the deadlines established for issuing the bonds on February 6, 2013, the preliminary official statement must be approved at this meeting.
Projected Future City Council Action
On January 8, 2013, at its regular meeting, Council will conduct a public hearing and award the sale of the certificates of obligation and the general obligation (limited tax) bonds.
Fiscal Impact
The fiscal impact of issuing the library bonds has been included in the FY 2013 Approved Budget. The Pfluger Farm Lane project was discussed with the Pflugerville Community Development Corporation (PCDC) during the Arista project negotiations. The City and PCDC approved an agreement on June 12, 2012 to have the debt service payments for this issue paid by the PCDC until such time as the property tax from the Arista development supports the debt service amount. The debt service payments from PCDC will be reimbursed to them with property tax proceeds from the Arista project. In summary, the property tax proceeds from the Arista project will be the funding mechanism for the debt service payments for this issuance.
Staff Recommendation
Approve the resolution.
Drafter
Lauri Gillam
Assistant City Manager