Title
Conduct a public hearing regarding the issuance of City of Pflugerville, Texas Limited Tax Bonds, Series 2017 and consideration and action with respect to "Ordinance authorizing the Issuance of City of Pflugerville, Texas Limited Tax Bonds, Series 2017; Authorizing the Levy of an Ad Valorem Tax in Support of the Bonds; Approving an Official Statement, a Purchase Agreement, and a Paying Agent/Registrar Agreement; and Authorizing Other Matters Related to the Bonds." (Street and Park Projects 2014 and 2015 general obligation bond elections)
Summary
The issuance of these bonds will be used for street and park projects authorized by citizens in the 2014 and 2015 general obligation bond elections. This is the third and final issuance related to the 2014 election, including approximately $7.5 million for street projects (of $28 million authorized) and approximately $4.6 million for parks projects (of $25 million authorized). This is the second and final issuance related to the 2015 election, including approximately $6.6 million for street projects (Weiss Lane). After this issuance, no authorized general obligation bonds will remain to be issued.
The attached ordinance has been prepared by bond counsel. The pricing terms of the bonds 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.
Mr. Terrell Palmer, the City's financial advisor with Hilltop Securities and Mr. Richard Donoghue, City's bond counsel with McCall, Parkhurst, and Horton, will be in attendance to answer any questions that City Council may have.
Prior City Council Action
On October 24, 2017, the City Council approved a draft of the Preliminary Official Statement.
Deadline for City Council Action
Approval of this ordinance will allow for the issuance of bonds and for the City to receive funds on December 12, 2017.
Fiscal Impact
The bonds have been structured such that the first payment is due in August 2018. The fiscal year 2018 budget includes funding for the principal and interest due at that time.
Staff Recommendation
Conduct the public hearing and consider the ordinance on first and final reading to Award Sale of Bonds.
Drafter
Lauri Gillam
Assistant City Manager