The Llano City Council on a voice vote approved Ordinance No. 1573 authorizing the issuance and sale of a limited tax note in the approximate principal amount of $1,070,000 to finance the purchase of a fire truck and related costs. The council voted to award the sale after a public hearing and presentations from the city's bond counsel and financial advisor.

Bond counsel Bart Fowler explained the federal tax rules that require a public hearing before issuing tax-exempt or tax-favored obligations and opened the public hearing; no members of the public spoke for or against the issuance. Jennifer Ritter of Specialized Public Plans, the city's financial advisor, described a competitive private placement/bidding process. The city received bids from four banks; Ritter recommended Texas Regional Bank (Dallas) as the low bidder at 4.15% interest. She said the notes are limited by state law to a maximum seven-year payout and that the debt service schedule was structured as level payments, with annual payments just under $180,000 and a final payment in 2032.

Ritter said the issuance would include a cost of issuance of roughly $27,000, with net proceeds for construction estimated at about $1,042,443 after fees. She said funds could be delivered to the city on September 18 if the council approved the sale and the city completed legal approvals, including review by the Texas Attorney General.

Councilmember motioned and a second was recorded; the ordinance passed on a voice vote. The council also discussed the option to reject the bids and re-run the process if it wanted lower rates, but Ritter cautioned that rebidding would expose the city to market movement and likely take about three weeks. She also noted a prepayment option in the bank's proposal that would allow the city to prepay without penalty starting March 15, 2026, at the city's discretion.

The action taken was a sale award and adoption of an ordinance that levies an ad valorem tax to pay the note and prescribes note form and sale agreements. The council directed the mayor and staff to complete required closing steps with bond counsel and the financial advisor.

The council's approval follows the public hearing held as part of the same meeting; the hearing was advertised on the city website for at least seven days as required by federal tax rules referenced by bond counsel.