PRESENTER: Presenter
Sandy Paulos, Director of Finance
Body
SUBJECT: Title
Discuss and consider approval of an Ordinance Authorizing the Issuance of City of New Braunfels, Texas General Obligation Bonds, Levying of An Ad Valorem Tax in support of The Bonds; Approving a Paying Agent/Registrar Agreement, an Official Statement, and a Purchase Agreement; establishing procedures for selling and delivery of one or more series of The Bonds; and authorizing other matters relating to the Bonds.
BACKGROUND INFORMATION:
The General Obligation Bond Issuance referenced in the caption above totals $16,060,000 and will be utilized to support projects in the 2013 & 2019 bond programs. Additional detail on the issuance is provided below.
2013 Bond Program - The approximately $2,545,000 issuance is the final issuance for the 2013 Bond Program. The proceeds will be utilized to support projects within the following proposition:
• Proposition 2 - Drainage Projects.
While work has been completed on all initial 2013 bond projects, these funds are going to be specifically earmarked for projected overages for two specific 2019 bond projects, Klein Road Improvements - Phase II and Goodwin/Conrads Lane expansion.
2019 Bond Program - The approximately $13,515,000 issuance is the final issuance for the 2019 Bond Program. The proceeds will be utilized to support projects stemming from this bond program; specifically, the proceeds will support the following propositions:
• Proposition 1 - Streets Projects
• Proposition 3 - Public Safety Facilities and Projects.
Parameter Sale
A parameter sale sets minimum parameters of the issuance/sale and designates the City Manager, the 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: $16,060,000
2. Maximum Interest Rate: 4.50%
3. Maximum Maturity: February 1, 2042
The proposed I&S rate of 20.89 cents includes the annual debt service associated with this issuance.
ISSUE:
N/A
FISCAL IMPACT:
The proceeds for the GO bonds will go directly to support the 2013 and 2019 bond program projects. The annual debt service payment will be structured to align with the I&S rate for FY 2023, which is proposed to decrease by approximately 1.9 cents.
Recommendation
RECOMMENDATION:
Staff recommends approval of the ordinance.