Title
Approving a Resolution Directing the Publication of Notice of Intention to Issue City of Pflugerville, Texas, Combination Tax and Revenue Certificates of Obligation, and Other Matters Related Thereto.
Summary
This is the first step in the process of issuing debt to finance projects approved by the City Council. The City Council has discussed the need for certain projects to be completed in the City of Pflugerville. 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). The total amount of certificates of obligation issued will not exceed $4,600,000. This amount includes all project and bond issuance costs. Mr. Bill Harrison will be working with the City as the financial advisor for this transaction, and Mr. Richard Donoghue will be working with the City as bond counsel. Mr. Donoghue will be at the City Council meeting to answer any questions you may have. The resolution has also been reviewed by Mr. George Hyde, City Attorney.
Deadline for City Council Action
In order to close on the bonds and receive the funds by February 6, 2013, this resolution must be approved on November 13.
Projected Future City Council Action
The next action to be taken by the City Council will be on December 11, 2012, to approve the preliminary official statement. On January 8, 2013, at its regular meeting, Council will conduct a public hearing and award the sale of the certificates. A tentative financing schedule is attached to this agenda item.
Fiscal Impact
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