The City of Llano on Monday approved an ordinance authorizing a limited tax note in the approximate aggregate principal amount of $1,070,000 to finance public safety equipment, including a fire truck, and to pay issuance costs.
The ordinance (No. 1573) gives the mayor authority to complete related purchase and paying-agent agreements and levies the ad valorem tax to pay the note; the council voted to award the sale after a presentation from the city’s bond counsel and financial advisor.
Bond counsel Bart Fowler opened the public hearing required by federal tax rules and explained that the notes finance “safety equipment and related items and paying professional services in connection therewith.” Jennifer Ritter, the city’s financial advisor, said the city solicited bids and received four responses; Texas Regional Bank was the low bidder at 4.15 percent and is the recommendation to the council. Ritter said the structure is a statutory 7-year tax note with level debt service and an optional prepayment date of March 15, 2026, at the city’s discretion. She said the expected net construction fund after issuance costs is roughly $1,042,443 and that closing could occur on Sept. 18 if the council moved forward.
Councilmember motioned to approve the ordinance and the sale, a second was offered, and the council voted in favor with no recorded opposition; the motion carried and ordinance 1573 was approved.
Council members and staff said the next steps include finalizing legal documents with the Texas Attorney General’s office and coordinating the city finance team and closing logistics.
Implementation and timeline: the notes are limited to a maximum statutory seven-year payout; the city may prepay without penalty beginning March 15, 2026, in its discretion. The issuance includes an estimated cost of issuance and related fees that will be paid from the transaction proceeds.
Action items and formal outcome: Ordinance 1573 was adopted and the sale was awarded to the low bidder. Staff and bond counsel will complete closing steps and submit required documents to the Texas Attorney General.