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Item # 4.d.

City Council (FY24)

Meeting Date:	02/27/2024
Department:	Finance
Pillars:	Excellence in Asset Management Excellence in Transportation Systems Gold Standard in Financial Health
Milestones:	Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems Improve all modes of transportation with infrastructure in an acceptable condition and well maintained Continue development and implementation of the Long-Term Financial Plan

AGENDA CAPTION:

Consider action to approve a resolution authorizing the City Manager to file an application for financial assistance with the State Infrastructure Bank in an amount up to $44,600,000.

BACKGROUND:

At the February 13, 2024 Council meeting, staff discussed road construction financing opportunities through the State Infrastructure Bank (SIB). The SIB is a revolving fund managed by TXDoT to provide low-cost financing solutions for eligible borrowers. If approved, the interest rate on the loan through the SIB would be approximately 0.95% lower than a traditional bond issuance, potentially saving the Town up to an estimated $4.4 million in financing costs. Staff recommended pursuing this program for projects that qualify and were approved in the 2019 bond program including: Keller Springs Road, Quorum Drive, and Montfort Drive. Council directed staff to bring forward the resolution authorizing the City Manager to complete the application for the loan in an amount up to $44,600,000.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - SIB Application