SUBJECT:
Consideration and Action on approval of an ordinance authorizing the issuance and sale of City of Saginaw, Texas Limited Tax Note, Series 2019; levying an annual ad valorem tax and providing for the security for and payment of said Note; providing an effective date; and enacting other provisions relating to the subject (Ordinance 2019-13)
BACKGROUND/DISCUSSION:
During the presentation by Lewis McLain at the May 21, 2019 City Council meeting the issue of debt capacity was discussed. Lewis presented a slide showing the current debt obligations and the capacity for new debt. An option was presented to issue short term debt in order to maintain capacity in the interest and sinking portion of the tax rate; an option to consider leading up to a May 2020 bond election. At the July 23, 2019 City Council meeting Andrew Friedman of SAMCO Capital Markets, Inc. (the City's financial advisors) presented a financial analysis and timetable for issuing a $2,000,000 tax note.
FINANCIAL IMPACT:
The $2,000,000 tax note will fund the acquisition of approximately 9.4 acres of land for public facilities, municipal park improvements, parking lot improvements at the Police Department, and street and sidewalk improvements. The impact to the tax rate is estimated to be 2.12 cents in fiscal year 2019/2020.
RECOMMENDATION:
Staff recommends authorizing the issuance and sale of City of Saginaw, Texas Limited Tax Note, Series 2019; levying an anuual ad valorem tax and providing for the security for and paymet of said Note; providing and effective date; and enacting other provisions relating to the subject. |