Presenter/Contact
Presenter
Jared Werner, Chief Financial Officer
Contact Info
(830) 221-4385 -jwerner@nbtexas.org
Subject Header
SUBJECT:
Title
Discuss and Consider approval of an Ordinance Authorizing the Issuance of City of New Braunfels, Texas Tax Notes, Series 2020; Approval of An Official Statement and A Paying Agent/Registrar Agreement; Prescribing the Form of the Note; Levying An Ad Valorem Tax to Pay the Note; Awarding the Sale Thereof; and Enacting Other Provisions Relating and the appropriate budget amendment
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BACKGROUND / RATIONALE:
As mentioned in the previous agenda item, at the 28th regular City Council meeting, staff was given direction to move forward with utilizing bond refunding savings to support the issuance of a tax note. This maximizes our current ability to take advantage of the existing interest rate environment.
The tax note will address several critical technology and equipment replacement needs. The following equipment will be incorporated into the portion of the tax note tied directly to the refunding savings ($1,500,000):
- Police Department video storage system $220,000
- Citywide Network Replacement $450,000
- Cypress Bend Restroom Replacement $300,000
- Phase 1 - EMS Equipment Replacement $300,000
- Street Paver Replacement $230,000
An additional $300,000 has been added to the tax note to replace an ambulance unit that has recently experienced several critical engine failures. The cost of the repairs combined with the age of the current unit substantiate replacement of the overall vehicle. This particular ambulance was also next in line for replacement. The annual debt service for the ambulance will be paid from the Fire Apparatus Replacement and Maintenance Fund. To support the payment for FY 2021, a budget amendment is also recommended for City Council consideration.
Increase: Interfund Transfers $45,000
Additional information on the final interest rate and terms will be presented by City staff and our financial advisor during the City Council meeting.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
FISCAL IMPACT:
There is no net impact to property tax supported debt from the refunding and tax note. As mentioned above, the annual debt service payment for the ambulance will be supported by available revenues in the Fire Apparatus Replacement and Apparatus Fund
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff Recommends Approval