The City of League City is proposing to fund
projects identified in the 2017 to 2021 Capital Improvement Plan through the
issuance of Certificates of Obligation.
The proposed bond issue will fund $13.47 million in
tax and revenue supported City projects, if approved.
projects funded through the Certificates of Obligation would include
construction of the Ervin connector;
design of the new animal shelter and fire and emergency medical services
station No. 6, utility relocations and park improvements related to the
downtown revitalization project; the west side well and booster pump station
and waterline; the southeast service area water trunks; the north service area
16-inch water line at Grissom; annual sanitary sewer rehabilitations; annual
lift station improvements; improvements for Countryside #1 Lift Station; and
improvements to the Dallas Salmon Wastewater Treatment Plant effluent
Total cost for the Certificates of Obligation
include $4.93 million for tax supported projects; $8.33 million for revenue
supported projects; and approximately $210,000 for the cost of issuance. In addition, the proposed Certificates of Obligation include Tax Increment Reinvestment
Zone No. 4 borrowing $4.5 million to fund payments to the developer for costs
related to the extension of League City Parkway and Maple Leaf Drive in
conjunction with the Westwood Development.
City staff recommended the issuance of the Certificates
of Obligation to City Council after comparing several factors.
“Financing public improvement projects is critical
to maintaining the City’s ability to serve our citizens,” said Rebecca Underhill, Assistant City
Manager and Director of Finance. “Our staff has taken numerous factors into
consideration as we put together the recommendation for City Council. Certificates of Obligation are the most cost
effective borrowing method for the City.”
The legal requirement for Certificates of Obligation
includes the publication of a ‘Notice of Intent to Issue Certificates of
Obligation.’ On April 25, the City Council authorized the notice to be
published. The notices were published in the official newspaper of the City,
the Galveston County Daily News on May 3 and May 10. Voters then had 30 days to petition City
Council to hold an election on the proposed issuance of Certificates of
Obligation. Since the City Council did not
receive a petition, the Certificates of Obligation may be issued.
In addition to this notice process, the City Council
will hold a public hearing June 13, at 6 p.m., in City Council Chambers. The public hearing will be a part of the
regularly scheduled City Council meetings and are open to residents interested
in commenting on the proposed issue.
City Council will vote on the bond issue after the
second public hearing on June 13.
Visit www.leaguecity.com/bondissue for