City of Round Rock - File #: 2024-097

• File #: 2024-097
• Type: Resolution
• Status: Agenda Ready
• File created: 4/8/2024
• In control: City Council
• On agenda: 4/25/2024
• Final action: 4/25/2024
• Title: Consider a resolution authorizing the Mayor to execute an Agreement between the City of Round Rock and the Round Rock Transportation and Economic Development Corporation (RRTEDC) to Pay Debt Service on the Road Portion of the 2024 Combination Tax and Limited Revenue Certificates of Obligation issued by the City of Round Rock.

Date	Ver.	Action By	Action	Result
4/25/2024	1	City Council	approve	Pass

Title

Consider a resolution authorizing the Mayor to execute an Agreement between the City of Round Rock and the Round Rock Transportation and Economic Development Corporation (RRTEDC) to Pay Debt Service on the Road Portion of the 2024 Combination Tax and Limited Revenue Certificates of Obligation issued by the City of Round Rock.

Body

This agreement between the City and the RRTEDC (Type B) commits Type B to make the debt payments on road projects included in the Type B's Transportation Construction Improvements Plan (TCIP).  The City is scheduled to issue the first $10 million for the next five year program on April 25, 2024.  A portion of the previous 5 year program was paid by $111.5 million in Certificates of Obligation (COs) issued by the City from 2019 through 2022 and paid through the debt portion of the City's property tax rate. For the upcoming five year program, staff recommends shifting the debt payments to Type B.  This approach will better utilize the capacity of Type B by funding more road projects while mitigating the property tax rate burden on its citizens.

The City’s AAA-rated COs are a less expensive financing method than the RRTEDC’s AA+-rated sales tax revenue bonds.  Therefore, that method is recommended to accomplish the transaction.

Type B will have reviewed and voted on this item prior to the Council meeting.

Staff recommends approval.