AGENDA CAPTION:
Title
Consider approval of Resolution 2018-50R, directing publication of Notice of Intention to issue Certificates of Obligation in the amount of approximately $47,065,000 for (1) constructing, improving, extending and expanding city streets, bridges, sidewalks, bike lanes, pedestrian lanes, bus stops, parking, and related traffic improvements including acquiring any necessary rights-of-way and equipment; (2) constructing, improving and extending the City's Water and Wastewater system including acquiring equipment; (3) constructing, improving and renovating City Parks; (4) constructing, improving and designing municipal buildings to include the Animal Shelter, Municipal Services Complex, Public/Community Services building and related equipment purchases; (5) constructing, designing, equipping and renovating City Parking Facilities; (6) constructing and improving the City's Drainage and Flood Control Facilities; (7) constructing, improving and equipping the City's Airport; (8) constructing, designing, equipping and renovating Public Safety Facilities to include Fire Station relocation improvements and vehicle and equipment purchases; (9) replacing, improving, and developing Network Infrastructure Equipment; (10) preparation and completion of the Electric Utility System Master Plan; 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 3, 2018
Department: Finance-Heather Hurlbert, Finance Director
Amount & Source of Funding
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Fiscal Note:
Prior Council Action: This is the debt issuance for the FY2018 approved CIP
City Council Strategic Initiative: [Please select from the dropdown menu below]
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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Background Information:
The City of San Marcos approved a Capital Improvements Plan during the FY2018 Budget process that called for the funding of approximately $51,294,500 in Capital Improvement Projects for the City of San Marcos. These projects include street, infrastructure, drainage, electric, water/wastewater and airport improvements.
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 $47,065,000 including issuance costs. Two public notices are required to be posted in the local newspaper. The ordinance adopting the sale is currently scheduled for May 15, 2018. A complete timeline is attached.
Prior to issuance each project is reviewed to determine if the need for the project still exists, if the project will begin before the end of the fiscal year, and if there is alternative funding available for the project. If the project will not be started before the end of the fiscal year, the debt issuance is deferred to a future fiscal year.
Preliminary breakdown of the funding for the 2018 CIP is shown below:
• $37.0M-bond funded
• $7.5M-cash funded with Enterprise fund capital reserves
• $945K-deferred to a later
• $5.3M-issued by ARWA for the future water supply
• $1.0M-funded with GO bonds
In addition to the amounts above, $780K of amounts deferred from prior years will be included in the debt issue.
Staff is continuing to review the project list and deferred projects so the final amount of debt issued may be slightly different from the totals above, but will not exceed $47,065,000 including issuance costs.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
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