PRESENTER: Presenter
Sandy Paulos, Director of Finance
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SUBJECT: Title
Discuss and consider the approval of an ordinance authorizing the issuance of the City of New Braunfels, Texas combination tax and revenue certificates of obligation, series 2024; levying an ad valorem tax and pledging certain surplus revenues in support of the certificates; awarding the sale of the certificates; approving an official statement, a paying agent/registrar agreement and other agreements relating to the sale of the certificates; and ordaining other matters relating to the issuance of the certificates.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
The New Braunfels Economic Development Corporation (NBEDC) intends to issue $8 million in Certificates of Obligation for the purchase of approximately 130 acres of parkland on the northwest side of the City. The NBEDC intends to issue these certificates on behalf of the City’s credit rating, which allows them to take advantage of better interest rates.
City Council approved the purchase of this land by the NBEDC at its 2/12/24 meeting. A reimbursement resolution related to this purchase was approved by Council at its 4/22/24 meeting. Council approved the resolution authorizing proceeding with the issuance and the publication of the Notice of Intention for this issuance at the 6/24/24 meeting. The debt service related to these certificates will be entirely supported by the NBEDC (sales tax).
If approved, the closing for these certificates will take place on 9/25/24.
ISSUE:
N/A
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
Performance Measure: Progress towards acres of parkland per 1,000 residents metric as established by updated Parks and Recreation Master Plan.
FISCAL IMPACT:
The proceeds for the Certificates of Obligation will be used to support the purchase of approximately 130 acres of parkland in the northwest area of the City. The annual debt service related to the Certificates of Obligation will be supported entirely by the NBEDC.
Recommendation
RECOMMENDATION:
Staff recommends approval of the ordinance.