Proposed Certificates of Obligation Issue June 12, 2018
Total Tax Supported Projects and Funding per FY2018 CIP
Tax Supported Projects Current Funding Need
Total Revenue Supported Projects and Funding per FY2018 CIP
Revenue Supported Projects Current Funding Need Staff recommends not selling Revenue Supported Debt at this time and use cash on hand from previous bond sales for CIP project WT1109 36” Waterline from SH3 to SSH BPS. The 36” Waterline is not ready for construction at this time; construction funds to be re-issued with another sale.
Purpose of the Proposed Bond Issue To fund projects as defined in the FY2018-2022 Capital Improvements Plan as adopted in the budget ordinance 2017-21 on September 12, 2017 with revisions based on project schedules and available funding. Tax Supported $ 11.54 million Cost of Issuance $ 0.16 million Total $ 11.70 million
9/30/18 Year End Debt, Less Than 9/30/17 Chart saved in Budget Office/Bond Sales/2018 CO/Committed funds – balance of bond funds 9/30/2012 $ 275,850,000 9/30/2013 $ 260,351,943 9/30/2014 $ 251,164,742 9/30/15 $ 248,435,000 9/30/16 $ 244,960,000 (updated after 2016A refunding) $13.7 million is self supporting 9/30/17 $229,740,000 (updated after 2016A refunding) Used the chart in Budget/Bond/2018 CO/2018 Bond Issue FY2019 Budget-Tax Supported Debt Projection Total outstanding debt by year
Tax Supported Projects in the 2018 Bond Issue Ervin Connector $1.55 million New Animal Shelter $6.85 million Fire/EMS Station 6 $3.14 million $11.54 million John may take off Genco Canal and add amount to Station 6
Ervin Connector Project will construct Ervin from Calder Rd to the new Hobbs Road extension (approximately 1,850 feet) FY2018-2019 construction of a 2-lane concrete roadway with curb and gutter and will extend to Calder ($4.51 million) Estimated Total Project Cost =$5.8M 2018 Debt Issue Funding = $1.55M
New Animal Shelter Design of a new animal shelter to replace the current shelter building. 2018 Debt issue funds = $6.85 million Estimated Total Project Cost (FY2016-2019) = $7.54 million
Fire/EMS Station 6 Estimated total project cost for a facility to support 24-hour operations and include living quarters for six (four fire fighters and two paramedics/EMTs), three bays and a pumper = $5.675 million
Types of Bonds General Obligation Bonds Voted by the taxpayers Property tax pledge – best interest rate Revenue Bonds Pledge of water utility system revenue – higher interest rate and reserve fund required
Types of Bonds (continued) Certificates of Obligation Council authorization, after posting proper notice Notice provides taxpayers the opportunity to petition for an election Property tax pledge – interest cost similar to a GO bond
Recommended Bond - Single Certificates of Obligation Issue Provides the lowest issuance cost by combining the tax supported and revenue supported into one issue Lowest interest rate No reserve fund required No separate, dedicated reserve fund required
Additional Public Information Public Hearing – June 26 City Matters Article City Manager’s Update Facebook, Blackboard Connect Website www.leaguecity.tx.gov/bondissue LC News First Separate Video
Timetable June 26 Public Hearing City Council considers Notice of Intent to Issue Certificates of Obligation Aug 14 City Council Awards Certificates and Approves Issuance Sept 12 Funds are received