Presenter: Steve Whiston

Commission Agenda Item No. 9
FY06 General Obligation Bond and
Other Capital Improvement and
Repair Financing Resolutions
August 2005

I. Executive Summary: FY06 General Obligation Bond Financing: In November 2001 Texas voters approved Proposition 8 authorizing the issuance of $850 million in general obligation bonds for 13 state agencies, including $101.5 million for renovations and improvements for the Texas Parks and Wildlife Department. On October 17, 2002, the Texas Bond Review Board granted its approval for the Texas Public Finance Authority to issue $36.68 million for the Department against this authorization. In June 2005, the Seventy-Ninth Texas legislature authorized the issuance and appropriated debt service for an additional $18.075 million of these voter approved bonds.

FY06 Energy Performance Contract: In July 2003, The Texas Parks and Wildlife Commission passed a resolution authorizing the agency to seek Master Lease financing of an energy savings project. In July 2004, the agency received approval from the BRB for this financing.

II. Discussion: For the issuance of the General Obligation bond, a resolution authorizing a request for financing and the execution of documents is required between TPWD and TPFA and will be submitted to the Commission at the November 2005 Commission meeting. In order not to delay new project initiation, a further resolution is presently needed, declaring TPWD's intent to reimburse any expenditures incurred for such projects prior to the issuance of the bonds.

The energy retrofit project is in its final phases. It is anticipated that some of the necessary financing will fall into the 2006 biennium, thereby requiring an updated resolution to be submitted to TPFA in order to complete the financing of this project.

III. Recommendation:The staff recommends the Texas Parks and Wildlife Commission adopt the following motions:

"The Texas Parks and Wildlife Commission adopts by resolution (Exhibit A) the Declaration of Expectation to reimburse expenditures with proceeds of future debt. The Texas Parks and Wildlife Commission further adopts by resolution (Exhibit B) the Resolution for Master Lease Purchase Program Financing."