Title
Consider and take action on a resolution authorizing the publication of notice of intention to issue certificates of obligation (Assistant City Manager - CFO)
Background:
Approval of this resolution will authorize publication of the attached notice of intention to issue certificates of obligation up to $165.90 million.
State law provides that the City may issue certificates of obligation after the notice is published once a week for two (2) consecutive weeks in a newspaper that is of general circulation in the City, the date of the first publication to be at least forty-six (46) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. Notice of intent to issue certificates will be published on July 10 and 17 in the Galveston Daily News and on the City’s website. In addition, the Notice shall be posted continuously on the City’s website for at least forty-five (45) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. The attached timeline anticipated City Council approving the ordinance authorizing the bonds on August 25, 2026.
The notice of intention includes authorization up to $165.90 million in certificates of obligation. In order to save on issuance cost, an additional $8.10 million in GO authorized debt will be included in the sale.
The projects and funding for each are detailed below:
TIRZ 4 Supported - 6-year CO debt of $6.50 million to be funded by TIRZ Property Tax revenue
Major Thoroughfares: $6.5 million
Brittany Bay Blvd (League City Parkway)
Maple Leaf Drive
Detention (Excavation, Structures & Land)
TIRZ Administration & Interest Earned
4B Supported - 25-year CO debt of $49.50 million to be funded by 4B dedicated Sales Tax revenue
Pat Hallisey Park PK2001 $49.5 million
Revenue Supported - Utility 20-year debt totaling $20.90 million to be funded by Water and Wastewater Sale revenue
West Side Well, GST, Generator and BPS (Calder South) WT1707 $7.1 million
Dallas Salmon WWTP Improvements WW2103 $13.8 million
Revenue Supported - Utility 20-year debt of $6.0 million to be funded by Water Capital Recovery Fee revenue
West Side Well, GST, Generator and BPS (Calder South) WT1707 $6 million
Revenue Supported - Utility 30-year debt of $83.0 million to be funded by Wastewater Capital Recovery Fee revenue
2.0 MGD Expansion of SWWRF (to 6.0 MGD) WW2201 $83.0 million
2019 GO Bond Election Authorized Debt
While not required to be included in the formal notice of intent to sale, part of this issuance is $8.10 million Tax Supported GO Debt as authorized in the 2019 GO Bond Election. The $8.10 million will be funded by Property Tax Revenue and CIP Sales Tax Revenue.
Prop A - Drainage projects - 20-year debt totaling $5.6 million
Magnolia Creek & Cedar Gully Channel Improvements $4 million
Bayridge Flood Reduction Phase 4 $1.6 million
Prop B - Street/Traffic projects - 20-year debt of $2.5 million
Highway 3 & FM 518 Intersection Improvements $2.5 million
Bids are anticipated to be due on August 25, 2026 with project funding received on September 23, 2026.
Attachments:
1. Proposed Resolution
2. Project List
3. Debt Sale Timeline