AGENDA CAPTION:
Title
Consider approval of Resolution 2019-62R, directing publication of a Notice of Intention to Issue Certificates of Obligation in the amount of approximately $31,000,000 for Constructing, Improving, Designing and Equipping the City's (1) Water and Waste Water System including Meter Upgrades, System Operating Software, Water Quality Improvements and Utility Relocation; (2) Electric Utility System including Master Planning and Studies, Utility Relocation, and Meter Upgrades; (3) Streets including related Drainage, Sidewalks, Bicycle and Pedestrian Improvements; (4) Municipal Buildings to include the City Hall, Library and Charles S. Cock House; (5) Drainage and Flood Control Facilities; (6) Airport; (7) Public Safety Facilities to include Police and Fire Station Improvements; (8) Fiber Optic Infrastructure Equipment; (9) Recreational Facilities including the Sports Complex and City Parks; (10) Land Acquisition for a City Cemetery; and (11) the Payment of Professional Services in connection therewith including Legal, Fiscal and Engineering Fees and the costs of issuing the Certificates of Obligation and other matters related thereto.
Body
Meeting date: April 2, 2019
Department: Finance-Heather Hurlbert, Finance Director
Amount & Source of Funding
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Funds Available: Click or tap here to enter text.
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Fiscal Note:
Prior Council Action: CIP/Debt Work Session March 5, 2019
City Council Strategic Initiative: [Please select from the dropdown menu below]
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Background Information:
The City of San Marcos approved a Capital Improvements Plan (CIP) during the FY2019 Budget process that called for the funding of approximately $67,9578,000 in Capital Improvement Projects for the City of San Marcos. These projects include streets, drainage, electric, water/wastewater and airport improvements; facility improvements and repairs; network and fiber optic infrastructure; and master and comprehensive plan studies and implementation.
The first step in the process of issuing bonds is a resolution directing publication of the notice to the public of City Council’s intention to issue certificates of obligation in an amount not to exceed $31,000,000 including issuance costs. Two public notices are required to be posted in the local newspaper. A competitive sale is scheduled for May 21st and an ordinance adopting the pricing will be brought to city council for consideration that evening. A complete timeline is attached.
Prior to issuance each project is reviewed to determine the project is still needed, if the project will begin in the next 12 months, and if there is alternative funding available for the project. If the project will not be started in the next 12 months, the debt issuance is deferred to a future fiscal year.
Preliminary breakdown of the funding for the 2019 CIP is shown below:
• $30.7M-Bond funded
• $4.9M-Cash funded with Enterprise fund capital reserves
• $7.6M-Deferred to a later date
• $26.7M-Issued by ARWA for the future water supply/CDBG-DR funding
• $2.8M-Impact Fee funding
• $3.0M-New projects/additional funding for existing projects
In addition to the amounts above, $1.9M of deferred projects from prior years will be included in the debt issuance.
Staff is continuing to review the project list. The final amount of debt issued may be slightly different from the totals above, but will not exceed $31,000,000 including issuance costs.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
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