Presenter: Melanie Callahan
Commission Agenda Item No. 5
Issuance of Revenue Bonds
I. Discussion: Texas Parks and Wildlife Department received legislative and voter approval for $75 million in bond authorization in 1967 dedicated primarily to park development. While the bonds are legally general obligation bonds and backed by the full faith and credit of the State of Texas, it was legislative intent that the bonds be repaid through park fees. A total of almost $60 million has been prudently issued over 28 years and the debt service has never required a draw of general revenue. The current debt service level is $4.1 million per year and will be approximately $4.2 million through FY2008.
In FY97, TPWD analyzed the backlog of critical repairs and maintenance needs and forwarded the Infrastructure Task Force report to the Legislature. The report indicated critical repair projects totaling $75 million including $50 million in water/wastewater system repairs and replacements and a need for an annual $3 million in small repair and maintenance funds to prevent the creation of additional backlogs. The Seventy-fifth Legislature generously responded with a provision for $60 million in revenue bonds and the required debt service for the repayment of the bonds.
The needs assessed by this requested bond issuance of $12 million have been outlined in the capital budget. The remaining $48 million will be issued over the next four years. The debt service on these bonds is expected to be approximately $300,000 and will be paid from the legislative appropriation of General Revenue. The Texas Public Finance Authority issues bonds for certain state agencies and the Bond Review Board approves all bond issuances requested by agencies. The following resolution allows TPWD to begin this bond issuance process which takes approximately 4 months.
II. Recommendation: The staff recommends the Texas Parks and Wildlife Commission adopt the following motion:
"The Texas Parks and Wildlife Commission approves the issuance of $12,000,000 in Revenue Bonds to address infrastructure needs pursuant to the provisions of Chapter 11 of the Parks and Wildlife Code. The Executive Director is authorized and directed to proceed with the necessary steps required to issue said bonds including working with the Texas Public Finance Authority and the Bond Review Board. The Commission approves the attached resolution authorizing this issue."
Attachments - 2
1. Exhibit A - Resolution
2. Exhibit B - Fiscal Note
(Exhibits A and B are available upon request.)