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Highland Village approves certificates of obligation to fund two street projects
Summary
The Highland Village City Council approved an ordinance to issue certificates of obligation to fund reconstruction work on Highland Shores Boulevard and Highland Village Road after receiving competitive bids and a favorable S&P credit review.
The Highland Village City Council on Sept. 9 approved an ordinance authorizing the issuance and sale of combination tax and revenue certificates of obligation series 2025 to fund reconstruction of Highland Shores Boulevard and Highland Village Road.
City staff and the city's financial adviser presented results of a competitive sale earlier that day. Amber Chen of Hilltop Securities told the council the city again received a triple-A rating from Standard & Poor's and received four bids in the competitive sale; Raymond James submitted the lowest-cost bid. Chen reported a true interest cost of about 4.1 percent on a fixed-rate structure expected to remain in place for the roughly 20-year term discussed in the presentation.
Council discussion was limited. The staff presentation noted a principal/issuance amount and project funding figures in the sale materials: the presentation referenced a principal amount of $4,130,000 and indicated the financing would provide $7,075,000 to cover the two street projects. Staff said the sale's final numbers were better than the amounts budgeted earlier in the year, reducing estimated principal-plus-interest costs over the 20-year period by roughly $1 million compared with the budget estimate.
Mayor Wilcox and the council then moved to adopt the ordinance (Ordinance No. 2025-1329). The motion was put to a voice vote and recorded as approved by the council.
The presentation timeline provided by staff called for closing and funding on Sept. 25 if the council approved the final sale numbers at this meeting.
Why it matters: the certificates authorize borrowing to pay for capital street projects included in the city's capital improvement program. The favorable sale results and the city's triple-A rating reduce the financing cost to taxpayers compared with the city's prior budget estimate for the projects.
What remains: staff said closing and funding would occur later in September and that annual debt-service amounts are fixed under the sale's structure and will be included in future fiscal budgets.
