Title
Conduct a public hearing and consider approving an ordinance on first reading with the caption reading: ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF PFLUGERVILLE, TEXAS, COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2013; 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 ISSUANCE OF THE CERTIFICATES.
Summary
The issuance of these bonds willl be used for constructing, improving, extending, expanding, upgrading and/or developing City streets, intersections drainage, sidewalk and other traffic improvement projects and related costs and purchasing any necessary right-of-way, including Pfluger Farm Lane, and constructing, improving and extending the City's waterworks and sewer system in conjunction with the road project. The total amount of certificates of obligation issued, including issuance costs, will not exceed $4,600,000. The pricing terms of the obligations will be finalized and incorporated into the attached ordinance on January 8th after the obligations have been priced. The City's financial advisor and bond counsel will be in attendance to answer any questions the City Council may have. This ordinance only requires one reading.
Prior City Council Action
On November 13, 2012, the City Council approved a Notice of Intent Resolution for this bond issue. This Notice of Intent was published in the Pflugerville Pflag and the City's website for two weeks. On December 11, 2012, the City Council approved the Preliminary Official Statement to be printed and distributed.
Deadline for City Council Action
City Council must approve this ordinance in order to follow the schedule to issue bonds and receive funds by February 6, 2013.
Fiscal Impact
The debt service for this issuance was not included in the FY 2013 budget. However, through an agreement with the Pflugerville Community Development Corporation (PCDC), interest and principal payments will be paid by the PCDC until the value of the project being built on the land adjacent to Pfluger Farm Lane reaches a sufficient value to provide property tax revenue to make the annual payments.
Staff Recommendation
Conduct the public hearing and consider the ordinance on first reading.
Drafter
Lauri Gillam
Assistant City Manager