The City Council of Schertz, Texas, has announced its intention to consider the issuance of up to $20 million in certificates of obligation to fund various public improvements. According to a notice on the city's website, this action is scheduled to be discussed in a meeting at 6:00 p.m. on September 3, at Schertz City Hall. The proposed projects include constructing street improvements, buying necessary materials and equipment, and landscaping, among others, all aimed to enhance the infrastructure of the city.
The funding, supported by the levy of an annual ad valorem tax on taxable property within the city, will also be secured by revenues from the city’s utility system. Taking into account the city's existing obligations, Schertz's current outstanding principal amount from public securities is $93,405,000. An the estimated cost required to cover the principal and interest of these new certificates reaches approximately $29.4 million, with a targeted pay-off by August 1, 2044.
Residents and taxpayers of Schertz are encouraged to attend the meeting where the city council will debate the ordinance or ordinances necessary for this financial move. The certificates are an integral part of a larger initiative to upgrade the city’s public infrastructure, a plan that accounts for not just immediate repairs, but also for long-term improvements that will benefit the community. The details of the projects highlight the city's focus on streets, utilities, and ensuring that land and rights-of-way are procured for these improvements.
The city's notice clarifies that the maximum interest rate for the certificates shall not exceed the legal maximum, likely intended to assure taxpayers of the city's commitment to fiscal responsibility. Moreover, transparency regarding the existing and projected debt is detailed; the combined principal and interest required to pay all of the City’s outstanding securities, secured by and payable from ad valorem taxes on time and in full, is over $121 million.
