Agenda

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City Council Regular Meeting

Meeting Date:

10/22/2019

BACKGROUND

The Schertz/Seguin Local Government Corporation (SSLGC) was created on December 23,1998, on behalf of the Cities of Schertz and Seguin to assist in acquiring water outside of the Edwards Aquifer. Today the corporation has financed construction of well fields and pipelines that provides a reliable, drought-resistant water source for both cities and other municipalities.

Back in 2012, the San Antonio Water System (SAWS) wanted to connect to the SSLGC system. Since this was a good back up source of water and a potential customer, SSLGC agreed to issue $25,425,000 in bonds to build the connection if SAWS agreed to make the debt payments on their behalf. SAWS agreed and the bonds were issued under SSLGC's name in June 2012. Due to low interest rates, these bonds can now be refunded for a net savings of $2,185,000. Since SAWS is paying this debt, they will realize this savings.

Since the corporation is owned by the Cities of Schertz and Seguin, both cities must approve any bond sales, including refunding bonds.

The resolution tonight, in conjunction with a similar approval in Seguin expected on 11/5/2019, will allow SSLGC to issue to bonds on 11/20/2019 if they meet a minimum savings threshold.

GOAL

N/A

COMMUNITY BENEFIT

N/A

SUMMARY OF RECOMMENDED ACTION

Approve a resolution supporting the bond refunding for SSLGC.

FISCAL IMPACT

There will be no fiscal impact for the City of Schertz or the SSLGC with this resolution or this refunding bond sale, however, SAWS will recognize a savings on future bond payments.

RECOMMENDATION

Staff recommends approving Resolution 19-R-146.

Attachments
Res 19 R 146
Issuance Timetable