PRESENTER: Presenter
Sandy Paulos, Director of Finance
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SUBJECT: Title
Discuss and Consider approval of an Ordinance Authorizing the Issuance of City of New Braunfels, Texas Tax Notes, Series 2022; Authorizing the levy of an ad valorem tax in support of the notes; approving a paying agent/registrar agreement, an official statement and other agreements related to the sale and issuance of the notes; establishing the procedures for selling and delivering the notes; authorizing the reimbursement of certain project costs prior to the issuance of the notes and authorizing other matters related to the issuance of the notes.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
At the June 29th City Council retreat, direction was provided to move forward with a tax note to support several critical public safety initiatives that were originally considered for the 2023 bond program. Both the Bond Advisory Committee and City Council indicated a preference to determine an alternative funding strategy to support these projects. By doing so, it allows the equipment and projects to be initiated earlier, mitigating supply chain concerns and cost increases. In addition, it forgoes these projects having to compete with other critical transportation, drainage, and quality of life projects for consideration of the 2023 bond program. The following initiatives will be supported by the proposed tax note.
- Public Safety Radio Replacement
- Ladder Truck Replacement
- Fire Station #5 Renovation/Expansion
- Police Command Vehicle Replacement
The debt service associated with the tax note has been incorporated within the proposed I&S portion of the tax rate (20.89 cents).
Parameter Sale
A parameter sale sets minimum parameters of the issuance/sale and designates the City Manager, Assistant City Manager and Director of Finance as the pricing officers.
The attached ordinance establishes the proposed parameters for the Series 2022 issuance as follows:
1. Maximum Par to be issued: $10,000,000
2. Maximum Interest Rate: 4.50%
3. Maximum Maturity: February 1, 2029
ISSUE:
N/A
FISCAL IMPACT:
The proceeds of the tax note will support the purchase of public safety vehicles and equipment and fund improvements to public safety facilities. The annual debt service payment will be structured to align with the I&S rate for FY 2023, which was proposed to be decreased by 1.9 cents.
Recommendation
RECOMMENDATION:
Staff recommends approval of the ordinance