AGENDA CAPTION:
Title
Consider approval of Resolution 2025-29R, authorizing proceeding with issuance of Certificates of Obligation and further directing the publication of Notice of Intention to issue City of San Marcos, Texas Combination Tax and Revenue Certificates of Obligation for certain projects for improving, constructing, equipping, acquiring, or designing the city's new wastewater treatment plant; and the payment of professional services in connection therewith including fiscal and engineering fees and the costs of issuing the Certificates of Obligation related thereto in an amount not to exceed $20,000,000.
Body
Meeting date: February 18, 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 the Fiscal Year 2025 Capital Improvement Program (CIP). February 4, 2025 - City Council received a presentation on the CIP projects included in the Fiscal Year 2025 CIP at a work session.
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Background Information:
The Fiscal Year 2025 Capital Improvement Plan (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 certificates of obligation. The first step in issuing certificates of obligation is for City Council to consider a resolution directing the publication of a notice of the City’s intent to issue the debt obligation. If approved by City Council, the notice will be published once a week for two consecutive weeks in the San Marcos Daily Record and continuously on the City’s website.
There are two notices associated with the Fiscal Year 2025 CIP. This is to keep the costs associated with the City’s second wastewater treatment plant separate from other projects and is for internal tracking purposes only. Notice of Intent A is for all projects except the wastewater treatment plant and the not to exceed amount is $47,805,000. Notice of Intent B is for the wastewater treatment plant and the not to exceed amount is $20,000,000. The combined total not to exceed amount is $67,805,000.
This item focuses on Notice of Intent B. As previously stated, the only project to be funded through the issuance of certificates of obligation for Notice of Intent B is the new wastewater treatment plant. The estimated cost of the new plant is $103,000,000 and only $20,000,000 is needed currently for design. The debt obligations for the wastewater treatment plant will be repaid by the Water/Wastewater Fund. Staff is working on the project funding structure that is planned to include debt obligations, grants, and cash.
After the publication of the notice of intent, the next and final action required by City Council is to consider an ordinance authorizing the issuance of the certificates of obligation. This item is scheduled for April 15, 2025. A summary of the timeline of events associated with the issuance of the certificates of obligation is included.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council approve the resolution authorizing proceeding with issuance of certificates of obligation and further directing the publication of notice of intention to issue the certificates in an amount not to exceed $20,000,000.