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 proposed certificates of obligation will be used to fund the construction of street, park, and utility projects. By approving this resolution, the City is not bound to the issuance of bonds; however, if bonds are issued, the total amount cannot exceed $26,500,000, as stated in the attached resolution, prepared by Richard Donoghue, bond counsel. This amount includes all project and bond issuance costs.
The projects, outlined in the attached summary, include roadway, park and utility projects. Roadway projects include the construction of roadway for the remaining section of Pfluger Farm Lane (Phase B) and design and construction of the roadway and utility infrastructure associated with both Helios Way and Sun Light Near Way. A park project to construct a restroom facility and parking lot at Pfennig Pfields is included. Utility projects, as outlined in the attached summary, include: Pfennig Pump Station and Ground Storage, Pflugerville Parkway and Pfennig Lane Transmission Main extension and upgrade, Heatherwilde Elevated Storage Tank (design only), North Travis County Municipal Utility District (NTC MUD) Service Projects, Weiss Lane Transmission Main, South Weiss Lane Transmission Main, Downtown Pressure Zone Re-delineation, Sorento Wastewater Interceptor Phase 1, and Carmel Interceptor Phase 1.
Voters approved the issuance of $28 million for roadway projects and $25 million for parks projects in a November 2014 bond election. In conjuction with this issuance, the City will be issuing the first funding related to those projects in the form of general obligation (limited tax) bonds. The general obligation (limited tax) bonds of approximately $10.2 million and $2.0 million will be issued for roadway and parks projects, respectively. No action is currently needed on this issuance.
Mr. Terrell Palmer, of First Southwest, will be working with the City as the financial advisor for this transaction. Mr. Richard Donoghue, of McCall, Parkhurst, and Horton, 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.
Deadline for City Council Action
In order to close on the bonds and receive the funds by April 7, 2015, this resolution must be approved on January 27, 2015.
Projected Future City Council Action
At this meeting, City Council will also be requested to approve a resolution "Expressing Official Intent to Reimburse Certain Expenditures."
The next action to be taken by the City Council will be on Feburary 24, 2015, to approve the preliminary official statement and consider authorizing an issuance to refund exisiting certificate of obligation debt.
On March 10, 2015, 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 bonds have been structured such that there is no payment 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 general obligation bonds would equate to 2.3₵ on the ad valorem tax rate and the roadway and parks portion of the certificates of obligation 1.65₵ 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 is available within the current utility rate structure.
Staff Recommendation
Approve the resolution.
Drafter
Lauri Gillam
Assistant City Manager