To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider adoption of an ordinance authorizing the issuance and sale of City Of Keller, Texas, General Obligation Refunding And Improvement Bonds, Series 2020; levying an annual ad valorem tax and providing for the security for and payment of said bonds; approving an official statement, authorizing the execution of a purchase agreement, and paying agent/registrar agreement; and enacting other provisions relating to the subject.
Action Requested:
Consider adoption of an ordinance authorizing the issuance and sale of City Of Keller, Texas, General Obligation Refunding And Improvement Bonds, Series 2020; levying an annual ad valorem tax and providing for the security for and payment of said bonds; approving an official statement, authorizing the execution of a purchase agreement, and paying agent/registrar agreement; and enacting other provisions relating to the subject.
Background:
In September 2015, the citizens of Keller petitioned the Council to improve the Senior Activity Center and Council approved a needs study in February 2017 Brinkley Sargent Wiginton (BSW). Between September 2017 and January 2018, BSW conducted the study and results were presented to a joint meeting of Council and the Parks Board on January 30, 2018. In June 2018, Council held a special called meeting related to a new Senior Center project and called for a November Bond Election for a new Senior Activity Center at the July 17 2018 meeting. The voters approved up to $8 million for a new Senior Activity Center at Johnson Road Park. As part of the project, Council approved BSW as the architect of Record in February 2019 and approved Byrne Construction Services as the Construction Manager at Risk in June 2019. The project is nearing design and engineering completion and the project is ready to begin construction. In order to begin the construction bid process, the City will need to issue the voter approved general obligation (GO) bonds. The ordinance approves the sale of $8.0 million in GO bonds and at a premium for a net principal of $7.1 million. The debt will be a fifteen year note with an average annual payment of $627,000.
In addition to the new GO debt, the ordinance will refund the 2010 Certificate of Obligations and 2010B General Obligations with a total outstanding principal $5.7 million. For the General debt service, it will refund a principal of $4.3 million and the refunding impact will be an annual savings of $56,000. For the Utility debt service, it will refund a principal of $1.4 million and the refunding impact will be an annual savings of $14,500.
Financial Impact:
The total debt issuance is $12,840,000 with $7,100,000 related to new debt for the new Senior Activity Center at Johnson Road Park. The new debt annual impact will be $627,000 and the annual savings of the refunding will be $70,500.
Legal Review:
Bond counsel has prepared the ordinance.
Alternatives:
City Council has the following alternatives:
• Approve as submitted
• Table
• Denial
Council Action:
Consider adoption of an ordinance authorizing the issuance and sale of City of Keller, Texas, General Obligation Refunding and Improvement Bonds, Series 2020; levying an annual ad valorem tax and providing for the security for and payment of said bonds; approving an official statement, authorizing the execution of a purchase agreement, and paying agent/registrar agreement; and enacting other provisions relating to the subject.