The San Marcos City Council authorized the issuance of General Obligation Refunding Bonds in the amount not to exceed $120,000,000 in one year or more series on Tuesday.
The council voted unanimously to approve the bonds, which are to be sold in a negotiated sale with pricing scheduled for May 26.
The ordinance delegates the final approval of the sale within the parameters set forth in the ordinance, including maximum term, interest rate, and issuance amount to the pricing officer.
Dan Wegmiller, the city’s financial advisor, said, “It’s important to know that this is just an opportunity that you all at the city are tracking, and we are tracking with you. The current plans to come back to the council with the update on this refunding is roughly $16.8 million in refunding.”
Mayor Jane Hughson said the council discussed the bonds at a recent budget workshop where the city can save “a bunch of money basically by refinancing.”
According to Wegmiller, staff is expected to bring anything over the projected $16.8 million back to the council before any bonds are issued.
In other news, the council approved the issuance of $40,000,000 of combination tax and revenue certificates of obligation series 2020 for constructing, improvising, designing and equipping of the city’s (1) water and wastewater system; (2) electric utility system; (3) streets including related drainage, sidewalks, trafficimprovements and lighting; (4) municipal buildings to include the City Hall and other city facilities, HVAC improvements, roof replacements and security improvements; (5) stormwater management and flood control facilities; (6) airport, including hangars; (7) public safety facilities to include police and fire station improvements and a new ladder truck and engine; (8) network and fiber optic infrastructure equipment; (9) recreational facilities including parks and sports fields; (10) cemetery including land acquisition; (11) animal shelter; (12) parking including land acquisition; and (13) 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.
The City of San Marcos published a notice of intent to issue the certificates in the San Marcos Daily Record in March and posted the notice on the city’s website last week.
The published notice was for the issuance of certificates of obligations in the principal amount not to exceed $50.5M.
During the April 21, 2020 council Work session the total debt amount approved by the council was reduced to $33M.
These bonds are to be sold in a negotiated sale with pricing scheduled for the week of June 15, 2020.
The item was approved unanimously by the council.
Staff said principal payments are not expected to begin until at least two to three years for the combination tax and revenue certificates of obligation.NOTICE OF INTENTION 05.07.2020_202005071622061678