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 2015; 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 issuance of these certificates of obligation will be used for construction or improvements of City street, park and utility projects (see list attached). The total amount of obligations issued, including issuance costs, will not exceed $26,500,000.
The attached ordinance has been prepared by bond counsel. The pricing terms of the certificates will be finalized and incorporated into the ordinance on April 28th after the obligations have been priced. Moody's and Standard & Poors Investor Services will both assign ratings on this debt issuance. Moody's has upheld the City's A1 rating for this issuance. The Standard & Poors rating has not yet been received and will be reported at the Council meeting.
Mr. Terrell Palmer, the City's financial advisor, and a representative from the City's bond counsel will be in attendance to answer any questions that City Council may have.
Prior City Council Action
On January 27, 2015, the City Council approved a Notice of Intent Resolution for this issuance of Certificates of Obligation, Series 2015. On March 10, 2015, the City Council approved a first draft of the Preliminary Official Statement and took action to delay the issuance of the Certificates of Obligation until April 28, 2015. On April 14, 2015, the City Council approved a final draft of the Preliminary Official Statement.
Deadline for City Council Action
Approval of this ordinance will allow for the issuance of certificates of obligation and for the City to receive funds on May 27, 2015.
Fiscal Impact
The certificates have been structured with no payments due until February 2016 which will allow for funding as part of the 2016 budget. Although decisions regarding the distribution of the ad valorem tax revenues will be made during the budget process, based on FY15 information, the annual debt service on the certificates total up to 1.67₵ on the ad valorem tax rate. The utility portion of the certificate of obligation debt was considered during the 2014 utility rate study and funding of this debt service is available within the current utility rate structure.
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