Schertz briefed on proposed $15 million SSLGC bond; council to consider ratification Feb. 18

Schertz City Council heard an informational presentation Tuesday about a proposed Schertz‑Seguin Local Government Corporation (SSLGC) bond issuance that would allow the corporation to borrow up to $15,000,000 for water‑system capital improvements, presenters said.

The presentation matters because both the city of Schertz and the city of Seguin must authorize SSLGC to enter the bond market before the corporation can price and close the sale. Andrew T. Friedman, senior managing director for public finance at Samco Capital Markets, told the council the corporation already adopted a parameter sale resolution and expects the two cities’ approvals to clear the way for pricing and a later closing.

Friedman said “the corporation does wish to borrow an amount not to exceed $15,000,000 for certain improvements to the system,” and that council action on the corporation’s resolution will be scheduled for the council’s Feb. 18 meeting. Friedman explained the corporation’s designated pricing officers — the board president and the general manager — would lock in interest rates at pricing, then close and deliver funds for the capital improvements.

Brian James, deputy city manager, introduced the item and said SSLGC provides water services tied to the cities’ utility framework. Friedman told the council the financing is part of SSLGC’s capital improvement plan and that the projects have been factored into the cities’ capital plans and utility rates.

No formal action was taken Tuesday; staff said a formal resolution for the city to ratify the corporation’s action will appear on the Feb. 18 agenda for possible approval. Council members did not request additional information during the informational presentation.

The council’s formal consideration and any vote are expected at the Feb. 18 council meeting, when Seguin will take parallel action at its meeting that day.