The City of League City is proposing to fund projects identified in the 2016 to 2020 Capital Improvement Plan through the issuance of Certificates of Obligation.
The proposed bond issue will fund $13.65 million in tax and revenue supported City projects if approved.
City projects funded through the Certificates of Obligation would include construction on Calder Road; the Five Corners Realignment; stormwater improvements; west side economic development project; 36” Water Line from SH3 to South Shore Harbour Booster Station; new water lines on the west side; annual sanitary sewer rehabilitation; and the Bay Area Boulevard 12” sewer improvements.
Total cost for the Certificates of Obligation include $9.6 million for tax supported projects; $3.9 million for revenue supported projects; and $150,000 for the cost of issuance.
City staff recommended the issuance of a Certificates of Obligation to City Council after comparing a number of factors.
“Financing public improvement projects is critical to maintaining the City’s ability to serve our customers,” said Rebecca Underhill, Assistant City Manager and Director of Finance. “Our staff has taken numerous factors into consideration as we put together the recommendation for City Council. Certificates of Obligation are the most cost effective borrowing for the City.”
The legal requirement for Certificates of Obligation includes the publication of a ‘Notice of Intent to Issue Certificates of Obligation’ prior to the public hearings. On May 24, the City Council will be asked to authorize this notice to be published. Voters then have 30 days to petition City Council to hold an election on the proposed issuance of Certificates of Obligation. The petition must include at least 5% of registered voters protesting the issuance for an election to be held. If the City Council does not receive a petition, the Certificates of Obligation may be issued.
In addition to this notice process, the City Council will hold public hearings on May 24 and July 12, at 6 p.m., in City Council Chambers. The public hearings will be a part of the regularly scheduled City Council meetings and are open to residents interested in commenting on the proposed issue.
City Council will vote on the bond issue after the second public hearing scheduled for July 12, 2016.
Visit www.leaguecity.com/bondissue2016 for more information.