New Braunfels City Council is scheduled Sept. 28 to decide whether to authorize up to $9.6 million in certificates of obligation for the Coll Street project.
If approved, the debt would finance Coll Street drainage, roadway and underground-utility work, with annual debt service supported by New Braunfels Economic Development Corporation sales-tax revenue.
The city's item says the economic development corporation approved the project funding June 18 and council ratified the construction expenditure and contract July 13.
Council took another financing step July 27 by approving a notice of intent and a resolution allowing eligible project costs, up to $9.6 million, to be reimbursed from future certificate proceeds. The Sept. 28 item is the proposed authorization of the debt itself, not a record that the certificates have already been issued.
Final financing terms come with the bid results
The staff report says the city's financial adviser will present bid results before council acts. It also says the attached draft contains blanks that will be completed once the sale is finalized. That means the posted version does not yet supply the final principal amount, interest rates, maturity schedule or total repayment cost.
The draft would pledge property taxes and up to $1,000 in surplus solid-waste revenue as legal security. Separately, the staff report says the economic development corporation's sales-tax revenue would support all annual debt service. The final financing documents will show the actual borrowing terms council is being asked to accept.
What happens next
The council is scheduled to receive bid results Sept. 28; if it approves the ordinance, the city lists an Oct. 28 closing before proceeds become available.
The meeting begins at 6 p.m. Monday, Sept. 28, in the City Hall Council Chambers at 550 Landa St. Readers can inspect agenda item 26-1159 for the staff explanation and the draft ordinance for the proposed legal terms.