R-96-03-28-13D - 3/28/1996WHEREAS, First Southwest Company is employed as the City of
Round Rock's Financial Advisor for the purpose of advising the City
in all aspects of capital financing; and
WHEREAS, it has been deemed to be in the public interest
that the City consider financing capital improvements to the water
and wastewater system; Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That First Southwest Company is directed to proceed with all
matters related to issuance of wastewater utility system financing
obligations of the City of Round Rock, for the purpose of financing
Capital improvements to the water and wastewater system.
RESOLVED this 28th day of March, l996.
ATTEST:
E
C:\ WP00CS \RESOLUTI \RS603280.NPD /kg
RESOLUTION NO. R- 96- 03- 28 -13D
LAND, City Secretary
CHARLES CULPEFPER, Mayor
City of Round Rock, Texas
DATE: March 26, 1996
SUBJE City Council Meeting, March 28, 1996
ITEM: 13. D. Consider a resolution authorizing First Southwest Company to
proceed with the issuance of wastewater utility system financing
obligations.
STAFF RESOURCE PERSON: David Kautz
As discussed with the Council over the past several months, the City is currently
constructing or has plans to construct the following Utility System Improvements
(within a five year Capital Improvement time frame):
- Water System Improvements $31,398,000
- Wastewater System Improvements $26,890,000
The projects are expected to be financed with current available funds, capital recovery
fees and issuance of financing obligations (borrowing). The City is also exploring
regional financing/ construction options involving the Lower Colorado River Authority,
the Brazos River Authority and the cities of Austin and Cedar Park.
To preserve the City's options and required financing time, the borrowing process
must be started at this time. Staff recommends authorizing the City's Financial
Advisor, First Southwest Co., to proceed with the financing arrangements for the
wastewater projects. The amounts required ultimately depend upon whether the City
is the sole owner of the projects or is involved in a regional agreement. Furthermore,
the financing may involve short -term interim obligations, providing the City time to
work out regional issues, or may be of a long -term nature. These issues will be
further developed with the Council.