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R-99-11-09-10C4 - 11/9/1999RESOLUTION NO. R- 99- 11 -09- I A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK ( "CITY ") REQUESTING FINANCIAL ASSISTANCE FROM THE STATE INFRASTRUCTURE BANK IN AN AMOUNT NOT TO EXCEED $ r3 AUTHORIZING THE FILING OF AN APPLICATION FOR FINANCIAL ASSISTANCE; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. WHEREAS, the City Council of the City hereby finds and determines that there is an urgent need for the City to construct improvements to the City's transportation system, and WHEREAS, such capital improvements cannot be reasonably financed unless financial assistance is obtained from the State Infrastructure Bank, and WHEREAS, the City Council now desires to request financial oe assistance in an amount not to exceed $)3,79a,000., Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, Section 1. An application to the State Infrastructure Bank is hereby approved and authorized to be filed with the State Infrastructure Bank seeking financial assistance in an amount not to o0 exceed $13 2 to provide for the costs of construction of improvements to the City's transportation system. Section 2. The Mayor is hereby designated as the authorized representative of the City for purposes for furnishing such information and executing such documents as may be required in connection with the preparation and filing of such application for financial assistance and K: \W PDOCS \RESOLITTI \R911PSC4 .WPO /sc with complying with the Rules of the State Infrastructure Bank. Section 3. The following firms and individuals are hereby authorized and directed to aid and assist in the preparation and submission of such application and appear on behalf of and represent the City before any hearing held by the State Infrastructure Bank on such applications, to wit: Mr. Garry Kimball First Southwest Company 98 San Jacinto Blvd., Suite 370 Austin, Texas 78701 The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act. RESOLVED this 9th day of November, 1999. ST: City of Round Rock, Texas • LAND, City Secretary 2 1 ROBERT A. STLUKA,WR., Mayor Project Name: Draft Section I - Application Information Applicant Name: Round Rock Transportation System Development Corporation IRS Employer ID #: Business Address: 221 East Main Street, Round Rock, Texas 78664 Business Phone: 512- 218 -5400 Business Fax: 512 - 218 -5442 Contact Person(s): Contact's Phone: Contact's Fax: SIB99a.doc The City is requesting $ in SIB loan assistance. Loan terms have been detailed below, subject to approval by TXDOT: The $ in requested assistance represents roughly % of the $ total cost of transportation projects in the City's Transportation Master Plan which are currently in the planning stage. The City proposes to fund its % share of such total transportation projects with remaining 4B Sales Tax revenues, after SIB Loan payments. Descriptions of these City - funded transportation projects and associated estimated costs have been included as an attachment. The proposed structure of the SIB Loan is critical to the City insofar as these cash funded projects are concerned. The SIB Loan would enable the City to maximize its 4B Sales Tax revenues by freeing -up vital cash over the next several years, giving the City the ability to address a larger number of important regional traffic concerns. (Tom Word to further develop) Security for the Loan is proposed to be a lien against the City's 4B Corporation Sales Tax revenue. The City's 4B Corporation is legally authorized to pledge the revenues derived from the levy of a 1/2 cent Sales Tax as security for a loan entered into to construct transportation projects. This specific revenue source is currently unencumbered. The City would propose that additional debt of identical priority only be allowed to the extent that a 1.5:1 debt service coverage ratio could be demonstrated (standard provision for Sales Tax Revenue Bonds). Section II - Financial Information Amount $ Weighted Average Maturity : 12.979 Years Final Payment: 20 Years from 1 s` Draw Interest Rate: 4.25% First Interest Payment: Within 1 Year of l Draw Interest Payment Frequency: Annual First Principal Payment: Within 3 Years of 1st Draw Amortization of Principal: Structured to Achieve Equal Total Principal And Interest Between Years 4 and 20 (equates to approximately $ per year for years 1 -3 and $ per year for years 4 -20 - please see attached estimated Debt Service Schedule) Prepayment Option: Prepayable Anytime without Penalty Reserve Funds: City will maintain a minimum of $650,000 in Sales Tax Reserves (current balance: $650,000) through Final Maturity of the SIB Loan Project cost estimates have been provided below: Turnaround Lanes at IH- 35/1325 S3,175,000 US79 Improvements (phase I) 2,550,000 US79 Improvements (phase II) 4,400,000 South Mays Street Improvements 3,307,000 Total $13,432,000 S[B99a.doc Section II - Financial Information, continued As the City has no currently outstanding Sales Tax secured debt, there is no bond rating utilizing the proposed pledged revenue. The City's General Obligation bond ratings were last reviewed in June, 1998 and assigned as follows: Half -Cent Sales Tax revenues of the 4B Corporation for the fiscal year ended 9/30/99 are $6,722,247. This would be the revenue available and pledged as security for the proposed SIB Loan, which would have a first estimated payment due of $ ( times coverage). By 9/30/2004, revenue for the year is anticipated to reach $7,781,016, which would compare to a maximum SIB loan payment of $ ( times coverage). Schedules showing historical Sales Tax collections and projected 1/2 cent 4B Corporation Sales Tax revenues have been included as attachments. As a reference, a recent insured Sales Tax Revenue Bond sold for the City of DeSoto's 4B Corporation was rated AAA by Standard & Poors. This particular bond issue had a debt service coverage ratio of 1.41 and an additional bonds test of 1.4 times maximum annual debt service. SIB99a.doc Moody's Aa3 Standard & Poors AA- Section III — Project Information Description of project and its need including the potential impact on traffic congestion and mobility. A preliminary design study is to be provided which includes: SIB99a.doc • an initial route and potential alignments • the project's logical termini and independent utility • the location of all right -of -way, facilities and equipment required to make the project functional • revisions or changes to state highway system facilities necessitated by the project I certify that: The project sponsor has the authority to request and incur the debt described in this application, and upon approval, will enter into contract for the repayment of any financial assistance granted by the State Infrastructure Bank. The preliminary requirements have been completed as specified by the State Infrastructure Bank, and the project sponsor will comply with all applicable state and federal regulations and requirements. To the best of my knowledge all information contained in this application is valid and accurate and the submission of this application has been authorized by the governing body of the undersigned jurisdiction. SIB99a.doc Section IV — Statement of Acknowledgment and Certification Signature Date Print or Type name Title, Jurisdiction DATE: November 5, 1999 SUBJECT: City Council Meeting — November 9, 1999 ITEM: 10.C.4. Consider a resolution authorizing the submittal of a loan application to the State Infrastructure Bank for funding transportation improvements. Staff Resource Person (s): David Kautz, Finance Director and Tom Word, Traffic Engineer.