AGENDA CAPTION:
Title
Consider approval of Ordinance 2025-13, on the first and final reading, authorizing the issuance and sale of an approximate amount of $30,450,000.00 of Waterworks and Wastewater System Revenue Bonds, Series 2025, pledging the revenues of the water and wastewater system in support of the bonds; approving an official statement, a paying agent/registrar agreement for improving, constructing, equipping, acquiring, or designing the water and wastewater system and the payment of professional services in connection therewith including legal, fiscal and engineering fees and the costs of issuing the revenue bonds and other matters related thereto; and providing for the approval of this Ordinance 2025-13, on one reading as authorized by state law.
Body
Meeting date: April 15, 2025
Department: Finance and Engineering/Capital Improvement
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: September 17, 2024, City Council approved Ordinance 2024-40(b), approving the Fiscal Year 2025 Capital Improvement Program. February 4, 2025, City Council received an overview of the projects included in the FY 2025 CIP. February 18, 2025, City Council approved resolutions #2025-28R and #2025-29R authorizing publishing a notice of intent.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Quality of Life & Sense of Place
Public Safety, Core Services & Fiscal Excellence
Environmental Protection
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Wastewater Master Plan
Background Information:
The Fiscal Year 2025 Capital Improvement Program (CIP) was approved during the budget process and adopted on September 17, 2024. At the February 4, 2025, City Council Work Session, Shaun Condor, Director of Engineering/Capital Improvements, provided an overview of the projects that make up the Fiscal Year 2025 CIP, including previously deferred projects. Projects included in the CIP are funded by various sources, including cash, impact fees, grants, and debt obligations.
This item is for projects that will be funded by Water-Wastewater Revenue Bonds. City Council passed resolutions #2025-28R and #2025-29R on February 18, 2025 that authorized publishing a notice of intent. Two public notices were published on February 23, 2025, and March 2, 2025, in the San Marcos Daily Record and the notice is posted on the City’s website. The final action by City Council is the consideration of this ordinance authorizing the issuance of the revenue bonds.
The City applied for a Water-Wastewater System Revenue Bond rating through S&P Global Ratings. S&P Global Ratings assigned its AA rating to the 2025 Water-Wastewater System Revenue Bonds, with a stable outlook. The AA rating is strong and is the same rating the City has with its tax pledge. Only water-wastewater projects will be funded through the revenue bonds.
In total, $30,450,000 of revenue bonds will be issued, and $20,000,000 of this amount is for the new wastewater treatment plant. The revenue bonds are expected to be sold in a competitive sale with bids scheduled to be received the morning of April 15, 2025. A draft of the ordinance is attached, and the final version will be provided on April 15, 2025, after the revenue bonds are priced. The attached draft is not complete because the information will not be known until after the bonds are priced. The final version will include all information.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council approve the ordinance authorizing the issuance of Water-Wastewater Revenue Bonds, Series 2025, in the amount not to exceed $30,450,000.