TOWN STAFF REPORT RECOMMENDATIONS
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Discussion and consideration of all matters incident and related to approving and authorizing publication of notice of intention to issue certificates of obligation, including the adoption of Resolution 25-16 pertaining thereto (Wade Carroll, Town Manager)
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STAFF: Wade Carroll, Town Manager
BACKGROUND:
Due to pending legislation at the State level that would catastrophically limit the Town's ability to issue debt for needed infrastructure and capital improvements, the Town of Westlake is proposing a maximum issuance of $30m in combination tax and revenue certificates of obligation. Approval of Resolution 25-16 authorizes the publication of required notices; the sale of bonds will require a separate ordinance to be approved by the Town Council/Board of Trustees.
DISCUSSION:
The State of Texas' 89th Legislature has introduced multiple bills and amendments restricting the ability for local governments to issue debt. These restrictions are currently being considered in various committees and in different forms. The most restrictive would effectively eliminate Westlake's ability to issue any ad valorem-back debt, even when other revenues are pledged, until well into the next decade unless bonds are issued and funded prior to September 1, 2025. The immediate consequences would include elimination of development requiring new public infrastructure, significant increased costs for other debt that may need to be issued for emergencies or public safety, and the inability to meet donor obligations for Academy improvements.
In order to meet the funding deadline being considered, Westlake tentatively proposes to adopt an ordinance authorizing the issuance of interest bearing certificates of obligation, in one or more series, in an amount not to exceed $30,000,000 for paying all or a portion of the Town's contractual obligations incurred in connection with the planning, acquisition, design, expansion, renovation, equipping, and...
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