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Council hears legislative update; members warn proposed limits on certificates of obligation could affect local projects
Summary
City attorney briefed council on multiple bills in the Texas Legislature; members highlighted proposed restrictions on certificates of obligation and other preemption bills as a local funding risk.
At a council meeting update, the city attorney reviewed a range of bills pending in the Texas Legislature and told council members the session remains fluid. The presentation highlighted several bills that would limit local government authority or change election timing and finance rules.
The city attorney summarized proposals including a bill that would restrict or effectively prohibit the use of certificates of obligation, require bond elections to be held only in November, and increase advance notice required for open meetings. The city attorney described the bills as a "snapshot in time" and urged attention to the provisions under consideration.
Council and staff stressed the potential local impact if certificates of obligation are curtailed. The mayor said Nassau Bay often relies on certificates of obligation to raise funds more cheaply than bonds and warned restrictions could affect planned purchases, including a fire ladder truck procurement strategy. "This restricting of the certificate of obligations is basically the format that we use to raise funds," the mayor said, adding that staff is assessing options to protect the city's ability to finance equipment and infrastructure.
Council asked the city attorney to continue monitoring the legislative session and report back after a June 27 update by the Texas Municipal League. No formal council action was taken at the meeting; the discussion served as an informational briefing.
