The Waxahachie City Council approved a resolution on May 21 directing publication of a notice of intent to issue certificates of obligation (COs) to finance capital projects identified in the city’s five-year capital improvement program (CIP).

Chad Tusteson, the city’s finance director, told the council staff had updated the CIP and funding strategy and planned to use certificates of obligation for portions of the program. Tusteson said the bond portion of the CIP included approximately $57 million in projects for streets, public safety, parks, an animal shelter and water/wastewater projects. He said non-utility projects’ debt service is accounted for in current budget projections and would not require a tax-rate increase, while utility debt service would be funded through utility rates.

Tusteson outlined the statutory steps needed to issue COs: publish notice of intent, work with the financial advisor and bond counsel to prepare documents and meet with rating agencies, and—if council proceeds—consider an ordinance on Aug. 4 to authorize issuance and pricing. Staff estimated funds would be available in late August or early September and projects would begin in the fiscal year starting Oct. 1.

Council approved the resolution directing publication of the notice and preparing the preliminary official statement and related materials. Council members asked questions about prior bond payoffs and the potential to call older debt; staff said refunding depends on market rates and call provisions in the existing debt instruments.