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File #: ORD-0308    Version: 1 Name:
Type: Ordinance Status: Mayor's Office
File created: 6/16/2016 In control: City Manager Office
On agenda: 6/28/2016 Final action: 6/28/2016
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 2016A; 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
Attachments: 1. Ordinance (CO) -2016A - v2.pdf, 2. Proposed CO 2016 list 5_4_16.pdf, 3. Tentative Financing Schedule_2016 CO_GO_Bonds.pdf

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 2016A; 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 fund land acquisition, roadway, park, and facility improvement projects and police software (list attached).  The total amount of obligations issued, including issuance costs, will not exceed $9,380,000. 

 

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 2016A.  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 bonds have been structured such that the first payment, interest only, is due in February 2017 and the first principal and interest payment is due in August 2018.  The police software has been included in the CO issue on a 5 year payment schedule to more closely match the potential life of the asset.  The estimated cost of this debt as it relates to the tax rate is calculated based on FY17 estimated assessed valuation information received from Travis Central Appraisal District and the proposed payment schedule provided by the City's Financial Advisor.  The FY17 annual payment on the certificate of obligation bonds equates to an additional 0.91 of the estimated ad valorem tax rate, increasing to adn estimated total 1.92 with the full payment in fiscal year 2018. 

 

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