Title
Conduct a public hearing regarding the issuance of City of Pflugerville, Texas Combination Tax and Limited Revenue Certificates of Obligation, Series 2017B and consideration and action with respect to "Ordinance Authorizing the Issuance of City of Pflugerville, Texas Combination Tax and Limited Revenue Certificates of Obligation, Series 2017B; 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 Certificates." (TIRZ developer reimbursement)
Summary
The proposed certificates of obligation will be used to reimburse the developer for projects constructed by the developer in the Tax Increment Reinvestment Zone (TIRZ). The total amount of obligations issued, including issuance costs, will not exceed $2,300,000. This payment will fully reimburse the developer for all projects completed under the TIRZ project plan.
Originally, an additional bond issuance was proposed to reimburse the City for the remaining portion of reimbursement due for City constructed TIRZ projects. Upon discussions with the City's Financial Advisor, this issuance will not proceed and will be funded directly from future TIRZ funds.
The attached ordinance has been prepared by bond counsel. The pricing terms of the certificates will be finalized and incorporated into the ordinance on November 14th after the obligations have been priced. Moody's Investor Services and S&P Global Ratings have both assigned ratings on this debt issuance. Moody's has maintained the City's Aa1 rating and S&P has maintained the City's AA rating. Mr. Terrell Palmer, the city's financial advisor, was instrumental in working with the staff last summer to have the City's bond ratings reviewed, and subsequently upgraded. This upgrade will have a positive effect on the interest rate paid by the city on this issuance.
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