Posted on: April 24, 2017
City seeks to issue Certificates of Obligation
The City of League City is proposing to fund projects identified in the 2017 to 2021 Capital Improvement Plan through the issuance of Certificates of Obligation.
The proposed bond issue will fund $13.47 million in tax and revenue supported City projects, if approved.
City projects funded through the Certificates of Obligation would include construction of the Ervin connector; design of the new animal shelter and fire and emergency medical services station No. 6, utility relocations and park improvements related to the downtown revitalization project; the west side well and booster pump station and waterline; the southeast service area water trunks; the north service area 16-inch water line at Grissom; annual sanitary sewer rehabilitations; annual lift station improvements; improvements for Countryside #1 Lift Station; and improvements to the Dallas Salmon Wastewater Treatment Plant effluent discharge.
Total cost for the Certificates of Obligation include $4.93 million for tax supported projects; $8.33 million for revenue supported projects; and approximately $210,000 for the cost of issuance. In addition, the proposed Certificates of Obligation may include Tax Increment Reinvestment Zone No. 4 borrowing $4.5 million to fund payments to the developer for costs related to the extension of League City Parkway and Maple Leaf Drive in conjunction with the Westwood Development.
City staff recommended the issuance of the Certificates of Obligation to City Council after comparing several 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.’ City Council will be asked to authorize this notice to be published on April 25. 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 April 25 and June 13, 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 June 13.
Visit www.leaguecity.com/bondissue for more information.