City Council Workshop or Special Called Meeting

CITY COUNCIL WORKSHOP MEETING MONDAY - OCTOBER 7, 2024 - 5:00 PM Notice of AGENDA Liberty Hill Independent School District Administration Building Meeting Room 301 Forrest ST Liberty Hill, TX 78642 Diane Williams Jacquetta Thayer Crystal Mancilla Wade Ashley Amanda L Young Michael Helbing LIVE VIDEO ACCESS AND RECORDINGS The live video link will be on the City's Facebook page. Following the meeting, the link for the live meeting will be removed. The recording of the meeting will be placed on the City's webpage: www.libertyhilltx.gov PLEASE SILENCE YOUR CELL PHONES 1) CALL TO ORDER AND ESTABLISH QUORUM 2) REGULAR AGENDA a) Presentation, discussion and possible action related to funding options for utility infrastructure project(s), including a Texas Water Development Board project. (P. Brandenburg, D. Thomison, M. Etienne) The City Council will receive guidance on options from the city's financial advisors: Dan Wegmiller; Managing Director of Specialized Public Finance, Inc. of Austin and Julia R. Houston; Partner with Orrick, Herrington & Sutcliffe LLP of Austin. The presentation included with the agenda does not address some of the grant options that the City may consider. Deputy City Manager Etienne may provide supplemental information regarding possible grant opportunities. 1  City Financing Tools Dan Wegmiller presentation for 10.07.2024 Workshop I.pdf 3) ADJOURNMENT The City Council, Boards, and Commissions reserve the right to reconvene, recess, realign, change the order of business, or adjourn into Execu ve Session at any me during the course of the mee ng, prior to adjournment, to discuss any item listed above, as authorized by Texas Government Code Sec on §551.071 (Consulta on with A orney), §551.072 (Delibera ons about Real Property), §551.073 (Delibera ons about Gi s and Dona ons), §551.074 (Personnel Ma ers), §551.076 (Delibera ons about Security Devices), and §551.087 (Development). In compliance with the Americans with Disabili es Act, the City of Liberty Hill will provide reasonable accommoda on for persons a ending mee ngs. To be er serve you, requests need to be received 48 hours prior to the meeting. Contact the City Secretary at 512-778-5449 – Extension 125. POSTING CERTIFICATION: I, ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was duly posted on the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 and on the City website (www.libertyhilltx.gov) on the ______ day of ____________________, 202_ at ______. Elaine Simpson – City Secretary. REMOVAL CERTIFICATION: I ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was removed from the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 on the ______ day of __________________, 202_ at _______. INITIALS _______ 2  CITY COUNCIL WORKSHOP CITY COUNCIL WORKSHOP MEETING MONDAY - OCTOBER 7, 2024 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 2.a Presentation, discussion and possible action related to funding options for utility infrastructure project(s), including a Texas Water Development Board project. (P. Brandenburg, D. Thomison, M. Etienne) 3  Financing Tools Available to Texas Cities with a Focus on Certificates of Obligation September 5, 2023 Dan Wegmiller Managing Director 4 Common Debt Financings Tools Texas Cities have four primary and most common debt issuance options that include: General Obligation Certificates of Type: Tax Notes Revenue Bonds Bonds Obligation (1) Purpose: General Purpose General Purpose General Purpose Enterprise System Voter Authorization: Yes (1) No (2) No No Not to exceed Amortization Not to exceed Not to exceed Not to exceed 7 years from date of Requirements 40 years 40 years 40 years issuance (3) I&S Taxes (3) (3) Source of Payment: I&S Taxes I&S Taxes Revenues and/or revenues Strongest Credit; Similar to General Similar to General Higher than General Interest Rate: Lowest Interest Rates Obligation Bonds Obligation Bonds Obligation Bonds (1) If a bond election failed, Certificates of Obligation may not be issued for that purpose within 3 years of the election. (2) Publication of notice required; petition during notice period could require an election. (3) I&S Tax Rate is not subject to rollback. 1 5 Certificates of Obligation (“CO’s”)  No voter approval required, generally.  Requires 45-day minimum publication of Notice of Intent to issue  Secured by ad valorem property taxes AND specific revenue pledge.  Dual pledge of tax and system revenue allows for flexibility in which revenue is actually used to pay debt service (property taxes only required to be levied to the extent that system revenue insufficient to make bond payments).  Interest rates comparable to GO’s. 2 6 Recent Legislative Changes to Certificates of Obligation (2021)  87th Regular Texas Legislative Session approved House Bill 1869  Specifies what may be characterized as “debt” for repayment by I&S taxes  Introduced the term “Designated Infrastructure” (Section 26.012 of HB 1869)  Projects eligible to be financed with debt supported by I&S taxes are:  Public Safety  Public Works (streets, drainage, waterworks and sewer system)  Existing facilities owned by the City  Telecommunications and cybersecurity 3 7 Recent Legislative Changes to Certificates of Obligation (2023)  88th Regular Texas Legislative Session approved House Bill 4082  Provides a definition for “public work”  means any of the following public improvements as authorized by law:  a street, road, highway, bridge, sidewalk, or parking structure;  a landfill;  an airport;  a utility system, water supply project, water treatment plant, wastewater treatment plant, or water or wastewater conveyance facility;  a wharf or dock;  a flood control and drainage project;  public safety facility, including a police station, fire station, emergency shelter, jail, or juvenile detention facility;  a judicial facility;  an administrative office building housing the governmental functions of the municipality or county;  an animal shelter;  a library; or  a park or recreation facility that is generally accessible to the public and is part of the municipal or county park system;  means the rehabilitation, expansion, reconstruction, or maintenance of an existing stadium, arena, civic center, convention center, or coliseum that is owned and operated by the municipality or county or by an entity created to act on behalf of the municipality or county; 4 8