Title
Discuss and consider action to approve a resolution with the caption reading: "Resolution authorizing the publication of Notice of Intention to Issue City of Pflugerville, Texas Combination Tax and Limited Revenue Certificates of Obligation, Series 2021, and other matters related thereto" (Land Acquisition and Public Safety in support of EMS services)
Summary
The approval of the Notice of Intent is the first step in the process of issuing Certificates of Obligation (“C/O”s). The proposed issuance of Certificates of Obligation will be used to fund capital improvement projects for acquisition of land for a new City Hall ($10MM), and construction or support of new EMS services ($5MM).
By approving this resolution, the City is not bound to the issuance of C/Os. However, if issued, the total amount cannot exceed $15 million, as stated in the attached resolution, prepared by Richard Donoghue, bond counsel. This amount includes all project and bond issuance costs. At this meeting, City Council will also be requested to approve a resolution "Expressing Official Intent to Reimburse Certain Expenditures" which allows for project costs related to this issuance paid prior to funding to be reimbursed to the City. A tentative issuance schedule is attached to this agenda item.
The C/Os will be issued in conjunction with the first issuance of general obligation (limited tax) bonds authorized by voters on November 3, 2020. At this election the voters authorized the City to issue a total of $101.7 million for transportation projects, $42.3 million for parks projects and $47.3 million for a recreation and senior center. We anticipate the issuance of approximately $56.289MM of the limited tax bonds. Additionally, the COs, and limited tax bonds will be issued in conjunction with utility system revenue bonds purchased by the Texas Water Development Board to begin the Wilbarger Waste Water Treatment plant.
Dusty Traylor and Bob Henderson of RBC Capital Markets are working with the City as the financial advisor for this transaction. Richard Donoghue, of McCall, Parkhurst, and Horton, will be working with the City as bond counsel. Representatives of both firms will be available during the City Council meeting to answer any questions you may have.
Previous City Council Action
The City Council approved Resolution No.1883-21-06-08-0882 providing authorization for Notice of Intent to Issue C/Os prior to public comment on the agenda item being considered, but public comment was heard immediately after the vote was taken. Upon recommendation of the City Attorney, the resolution is up for consideration and approval again.
Deadline for City Council Action
In order to facilitate the sale of certificates and bonds by August 24, 2021, this resolution must be approved on June 29, 2021.
Projected Future City Council Action
The next action to be taken by the City Council will be on August 24, 2021 when Council will conduct a public hearing and award the sale of the certificates.
Fiscal Impact
Funding Expected: Revenue __ Expenditure _x_ N/A ___
Budgeted Item: Yes _x_ No __ N/A __
Amount: _ $15,000,000 __
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required_X_ Date Completed:_06/02/2021_
Supporting documents attached:
Resolution
Issuance Schedule
Resolution No.1883-21-06-08-0882
Recommended Action
Approve the resolution directing the publication of notice of intent to issue City of Pflugerville Combination Tax and Limited Revenue Certificates of Obligation