4b-r-99-02 - 11/9/1999 RESOLUTION NO. R-99-02
WHEREAS, the Board of Directors of the Round Rock Transportation
System Development Corporation ("RRTSDC" ) hereby finds and determines
that there is an urgent need for the RRTSDC to construct improvements
to the City of Round Rock' 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 Board of Directors of the .RRTSDC now desires to
recommend to the Round Rock City Council that a request for financial
assistance be made to the State Infrastructure Bank in an amount not to
exceed $ 13 747 oro, Now Therefore
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ROUND ROCK
TRANSPORTATION SYSTEM DEVELOPMENT CORPORATION,
A recommendation is hereby made to the Round Rock City Council
that a request for financial assistance be made to the State
Infrastructure Board in an amount not to exceed $ /3) 1921000, to
provide for the costs of . construction of improvements to the City of
Round Rock' s transportation system.
The Board of Directors , 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
K:\WPDOCS\RESOLUTI\RRTSDC\9902.WPD/sc
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 .
ROUND ROCK TRANSPORTATION SYSTEM
DEVELOPMENT CORPORATION
By. _ eir /y- -.� v
resident
ATTEST:
1 i
GAY a MANBECK, Secretary
2
Draft
Section-I-Application Information
Project Name:
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:
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SIB99a.doc
j Section II- Financial Information
The City is requesting$ - in SIB loan assistance. Loan terms have been detailed
below, subject to approval by TXDOT:
Amount • $
Weighted Average Maturity: 12.979 Years •
• Final Payment: 20 Years from 1S`Draw
Interest Rate: 4.25%
First Interest Payment: Within 1 Year of 1st 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 $3,175,000
US79 Improvements (phase I) 2,550,000
•
US79 Improvements (phase II) 4,400,000
South Mays Street Improvements 3,307,000
Total $13,432,000
The$ 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. (Toni 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).
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SIB99a.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:
Moody's Aa3
Standard& Poors AA-
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.
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SIB99a.doc
� Section III—Project Information
Description of project and its need including the potential impact on traffic
congestion and mobility.
A preliminary design studyis to be provided which includes:
• 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
•
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SIB99a.doc
Section IV—Statement of Acknowledgment and Certification
•
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.
Signature Date
Print or Type name Title, Jurisdiction
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SIB99a.doc