Title
Conduct a public hearing regarding the issuance of City of Pflugerville, Texas Limited Tax Bonds, Series 2019 and consideration and action with respect to "Ordinance authorizing the Issuance of City of Pflugerville, Texas Limited Tax Bonds, Series 2019; 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 Projects 2018 general obligation bond elections)
Summary
This public hearing and ordinance is the final step in the process of issuing debt to finance projects approved by the voters in the November 2018 bond election. The limited tax bonds will be used to fund street capital improvement projects of $5,225,000 as outlined in the project list attached to this agenda item. By approving this ordinance, the City is authorizing the issuance of limted tax bonds in an amount not to exceed $5,225,000, including all project and bond issuance costs. After this issuance, $15,875,000 of debt authorized for street projects in the November 2018 election will remain to be issued as a future date.
The attached ordinance has been prepared by bond counsel. The pricing terms of the bonds will be finalized and incorporated into the ordinance on January 22 after the bonds 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, financial advisor, and Mr. Richard Donoghue, bond counsel, will be at the City Council meeting to answer any questions you may have.
Prior City Council Action
At the November 13, 2018 Council meeting, a resolution was approved to begin the process for issuing the Combination Tax and Limited Revenue Certificates of Obligation, Series 2019.
At the January 8, 2019 Council meeting, a resolution was passed approving the Preliminary Official Statement and authorizing its distribution.
Deadline for City Council Action
The ordinance authorizing the issuance must be adopted on January 22 to complete the process of selling the bonds priced the same day.
Fiscal Impact
The first debt service payments are due in February 2020.
Funding Expected: Revenue ___ Expenditure ___ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: $5.225 million limited tax bonds
1295 Form Required? Yes _X_ No ___
Legal Review Required: N/A __ Required _X_ Date Completed: _ January 11, 2019
Supporting documents attached:
Ordinance
Projects for Bond Issuance Jan 2019
Financing Schedule
Recommended Action
Conduct the public hearing and consider the ordinance on first and final reading to award sale of certificates.