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. (Tax-exempt Certificates of Obligation for TIRZ, Series 2016B)
Summary
The Reinvestment Zone #1 of the City of Pflugerville, Falcon Pointe TIRZ (TIRZ) was created in December 2010 with the intent of reimbursing the developer and the City for specific projects constructed within the TIRZ boundary. The approved project plan (as amended) outlined the developer construction projects: Colorado Sand Segment A, South Tract regional pond, South Tract lift station, Lonestar Boulevard, and East Pflugerville Parkway; and City construction projects: Colorado Sand Segment B. To date, all construction projects are complete.
In accordance with the TIRZ financing agreement, a project reimbursement audit was completed by an independent auditor. This audit concluded that as of March 30, 2016, the developer had expended approximately $7.8 million on eligible projects. The financing plan also allows for interest to be paid to the developer on project costs for up to five years. The interest rate is identified in the financing plan as the rate of debt issuance and since that rate has not yet been determined, the auditor has estimated the interest at $768,933. Therefore, the total reimbursement due to the developer at this time is approximately $8.5 million. As of March 30, 2016, the City had expended approximately $2.2 million on eligible projects.
Since the creation of the TIRZ, the ad valorem taxes generated within the zone above a base value (or "increment") have been diverted from the City into the TIRZ funds. At the March 30, 2016 meeting of the TIRZ Board, the Board recommended to the Council to issue bonds, in an amount that can be supported by the current increment, in order to reimburse the developer and City for TIRZ related projects. The City's financi...
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