The City Council voted unanimously Aug. 5 to adopt Ordinance No. 3938, authorizing the issuance and sale of City of Farmers Branch, Texas general obligation bonds, series 2025, in an aggregate principal amount not to exceed $5,500,000 to fund water infrastructure projects.

"This is being concluded in the budget that you have seen, the proposed budget, and it's gonna tie directly to water infrastructure," Ben Williamson, City Manager, said during the presentation. Williamson told the council the bond issuance is part of a broader capital needs program that staff estimates at roughly $300 million for city infrastructure and that the bond sale will help "jump start" prioritized water projects.

Williamson also said the city’s recent high credit ratings from S&P and Fitch were affirmed and that maintaining those ratings helps secure lower interest rates for bond sales. When asked about term length, Williamson said maturities are typically 20 or 25 years depending on market conditions and that staff expected the issue to likely be 25 years but would confirm with the city’s municipal advisor.

On tax impact, Williamson stated the bonds were structured to absorb rolling off debt so the property tax rate would be held at its current level under the proposed budget. "We're not raising taxes to accommodate this, but we are holding rate," he said.

Hilltop Securities staff were present to answer technical questions; councilmembers posed no substantive objections and the item was adopted by unanimous vote.

Why it matters: The bonds provide immediate capital for water infrastructure projects identified in the city’s multi‑year plan. The city manager presented the issuance as consistent with maintaining the city’s current tax rate while addressing long‑term infrastructure needs.

Next steps: Staff will proceed with bond sale and closing under the terms authorized by the ordinance and the associated bond purchase and paying agent agreements. The city manager said staff would confirm final maturity schedule in coordination with the municipal advisor and underwriting team.

All quotes and attributions are drawn from the Aug. 5 council meeting transcript.