Agenda

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City Council Regular Meeting

Meeting Date:

08/02/2022

BACKGROUND

The Ordinance authorizes the sale of Obligations for the projects previously proposed and properly noticed subsequent the Notice of Intention Resolution adopted by the Council on June 7, 2022. The Certificates will fund street and drainage projects as well as repairs and improvements to the City’s Utility System in an amount not to exceed $19,855,000.

Due to volatile market conditions in the municipal bond market, the City is utilizing a negotiated sale method rather than a competitive sale method as has been the City’s practice over the past several debt issuances. The reason for doing so arises from concerns that competitive sales are not getting as many bids and the purchaser’s spreads are much wider than historical norms resulting in higher interest rate financings. The City designated Baird to serve as the senior manager of the financing with Raymond James and Frost Bank serving as co-managers.

GOAL

To approve a bond ordinance and improve roadways and the utility system in the City of Schertz.

COMMUNITY BENEFIT

To improve the reliability and availability of water services to the residents of the City of Schertz, to improve traffic flows along FM 1518, and to improve utilities, drainage, and quality of life on Main Street.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of the bond ordinance.

FISCAL IMPACT

When the CO’s are approved, along with the GO Bond, it is estimated that there will be no impact on the I&S tax rate or require a utility rate increase outside of the 5 year rate plan.

RECOMMENDATION

Staff recommends approving the Ordinance 22-B-33 authorizing the sale of the Certificates.

Motion: I MOVE THAT THE CITY COUNCIL ADOPT AN ORDINANCE AUTHORIZING THE “CITY OF SCHERTZ, TEXAS, COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2022A”

Attachments
Ord 22-B-33
Paying Agent Agreement
Purchase Contract