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 city of New Braunfels, Texas Tax Notes, Series 2024; levying an ad valorem tax in support of the notes; awarding the sale of the notes; approving an official statement, a paying agent/registrar agreement and other agreements relating to the sale and issuance of the notes; and ordaining other matters relating to the issuance of the notes.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
At Council’s direction, a vehicle replacement program funded by the issuance of rolling tax notes was initiated in FY 2024. As a reminder, the rolling tax note program is an ongoing vehicle replacement program for the City’s light fleet inventory. It replaces funding these items through the Equipment Replacement Fund and eliminates the need for a recurring annual transfer from the General Fund to the Equipment Replacement Fund for these assets. In addition, as capacity allows, critical heavy equipment will be incorporated into the rolling tax note program as well.
This evening, a $3,050,000 Tax Note is being considered that will support the second issuance of this rolling tax note program for the replacement of light fleet and some heavy equipment. Specifically, this tax note will provide funding for 26 light vehicles that have met the criteria for replacement (21 out of the 26 are for Fire and Police), as well the replacement of a fire engine, which is well beyond the current replacement criteria.
The debt service associated with the tax note has been incorporated within the proposed I&S portion of the tax rate for FY 2025 (20.39 cents).
ISSUE:
N/A
FISCAL IMPACT:
The proceeds of the tax note will support the replacement of light fleet and some heavy equipment for the City. The annual debt service payment will be structured to align with the I&S rate for FY 2025, which is proposed to remain at 20.39 cents.
Recommendation
RECOMMENDATION:
Staff recommends approval of the ordinance.