AGENDA CAPTION:
Title
Consider approval of Ordinance 2022-54, on first and final reading, authorizing the issuance and sale of an amount not to exceed $26,135,000.00 of Combination Tax and Revenue Certificates of Obligation, Series 2022, for constructing, improving, designing, and equipping the City’s (1) Water and Wastewater System, including an elevated water storage tank and extending/upgrading water and wastewater lines; (2) Streets including related drainage, sidewalks, traffic improvements and lighting (3) Airport; (4) Public Safety facilities and equipment to include police and fire improvements, including acquisition of vehicles and a fire engine; (5) Stormwater Management and Flood Control facilities; (6) Electric Utility System, including an additional circuit; and (7) 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; and providing for the approval of this Ordinance 2022-54, on one reading as authorized by with State Law.
Body
Meeting date: July 5, 2022
Department: Finance-Anna Miranda, Interim Director of Finance
Amount & Source of Funding
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Fiscal Note:
Prior Council Action: June 7, 2022 - Council provided authorization to publish notice of intent and direction to proceed with issuance of Certificates of Obligation in the amount not to exceed $26,135,000.
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Background Information:
Notice of intention to issue Certificates of Obligations (CO’s) in the amount of $26,135,000 was published in the San Marcos Daily Record on May 20, 2022 and May 27, 2022 and posted to the COSM website with the meeting date referenced as July 5, 2022 at 6pm. The published notice was for issuance of Certificates of Obligations in the principal amount not to exceed $26,135,000. During the June 7, 2022 Council meeting Council approved the total debt amount and publishing the notice of intent.
These CO’s are expected to be sold in a competitive sale with the bids scheduled for the morning of July 5, 2022. This draft ordinance will provide for the completion of the sale and finalized sale numbers will be provided to Council, prior to the meeting. In the event of any unexpected occurrences in the financial market on the date the bids are due, the ordinance includes the ability for delegation of the award of the sale if needed. Both, the City’s Financial Advisor, Dan Wegmiller, and Bond Counsel, Bart Fowler, will be at Council meeting to discuss the final results of the sale and answer any questions Council may have.
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Recommendation:
Staff recommends approval of the Ordinance authorizing the issuance of bonds.