Agenda

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13.

City Council Regular Meeting

Meeting Date:

09/28/2021

BACKGROUND

Section 1201.042 of the Texas Government Code allows for the city to reimburse itself for expenses made before debt is issued. This is most helpful when the intent of issuing debt is already established but the project needs to be started before the bonds are issued. This delay could be due to timing constraints or to consolidate debt to reduce issuing costs.

This resolution is related to the Woman Hollering Sewer Trunk Line project. Staff had been aware that there were not enough sewer impact fees available to complete the project. As this is an eligible impact fee project, any debt issued can be repaid from future impact fee collections. This way it would not affect current utility rates or impede other maintenance projects.

This resolution will allow the City to reimburse itself from bonds issued in July/August of 2022. This would be combined into any other bond issues to reduce costs related to the sale of bonds.

This resolution does not obligate the City to issue bonds for this project. Council can decide not to issue debt for this project if other funding sources become available.

GOAL

Ensure adequate funding is available for the Woman Hollering Trunk Line Project.

COMMUNITY BENEFIT

This line would provide sewer service for a large area in southern Schertz.

SUMMARY OF RECOMMENDED ACTION

Staff recommends adopting this resolution in order to reimburse the city with the sale of bonds.

FISCAL IMPACT

The estimated total construction cost is $11,583,000. The project will be funded from the remainder of the 2013 Bonds for this project, $7,795,000 million from Sewer Capital Recovery, and $2,200,000 from the sale of debt.

RECOMMENDATION

Staff recommends approval of resolution 21-R-111 with the motion

"I MOVE THAT THE CITY COUNCIL ADOPT A REIMBURSEMENT RESOLUTION 21-R-111"

Attachments
Resolution 21-R-111