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Council approves certificates of obligation split into two series to fund lead service line replacements
Summary
Denison City Council approved two ordinances authorizing the issuance of taxable combination tax and surplus revenue certificates of obligation, series 2025B and 2025C, to fund the city's lead service line replacement program.
The Denison City Council on Monday approved two ordinances authorizing the issuance of combination tax and surplus revenue certificates of obligation, taxable series 2025B and series 2025C, to finance the city's mandated lead service line replacement program.
Lori Alsaba, speaking to the council, said the two series are parts of the same financing and carry low interest with principal forgiveness through the Texas Water Development Board. She said the ordinances had been before the council earlier (Feb. 17) but were repeatedly tabled while the Office of the Attorney General completed its review; the Attorney General's approval was delivered before the April 7 meeting.
"The CEOs are a low interest loan with principal forgiveness... through the Texas Water Development Board," Alsaba said, describing the financing that will support the city's lead service line replacement work. She said approval by the Attorney General's office has been granted, and she asked the council to approve both ordinances.
Councilman Josh Massey moved to approve the ordinance authorizing issuance of the City of Denison combination tax and surplus revenue certificates of obligation, taxable series 2025B; Councilmember Thor seconded. The council voted in favor and the motion passed.
Later, the council separately approved a second ordinance for series 2025C. Alsaba said the loan had been broken into two series; the council approved the series 2025C ordinance on a motion by Massey and a second from Spence Redwine.
Council members noted the financing provides "free money" in the form of principal forgiveness to address lead in service lines. No opposition to either ordinance was recorded in the transcript.
The approvals allow the city to proceed with the financing steps required to draw funds for the lead service line replacement program; Alsaba and staff will continue closing processes and implementation steps now that Attorney General approval has been received.
