Belton council approves roughly $17.1 million bond sale to fund wastewater, public safety and utility projects

Belton City Council on April 20 adopted an ordinance on first and final reading authorizing the sale of Belton, Texas Combination Tax and Limited Revenue Certificates of Obligation, Series 2025 to fund wastewater, public safety and utility projects.

City staff said the competitive sale raised roughly $17.1 million to cover the city’s share of planned projects; staff and the city’s financial advisor presented the sale results and recommended proceeding. "The bonds that we're gonna talk about tonight, after delaying a couple of times, they're gonna pay for some vital, utility projects," said Mike, city staff, as he introduced the financing and the projects it will support.

The certificates drew six competitive bids and the winning bidder was Raymond James at a 4.27% interest rate, financial adviser Jennifer Ritter of Specialized Public Finance told the council. The sale affirmed the city’s double-A credit rating and is callable beginning in 2033. If council approved the sale, staff said closing would occur May 21, when proceeds would be available.

Why it matters: City officials said the borrowing would allow Belton to move forward with multiple capital projects now rather than delaying construction or raising taxes in a different way. The largest single purpose named by staff is the city’s share of a regional wastewater treatment plant expansion; staff said the total plant expansion is about $60.65 million and Belton’s share is roughly $12–17 million. Other listed purposes include a main lift station, Loop 121 utility relocations (phase 2), reimbursement for a fire apparatus already purchased, and future work on a public safety center at the former Miller Heights Elementary School.

Details of the sale and projects - Bids: 6 competitive bids received; winning bid: Raymond James (4.27% interest). - Par and proceeds: staff described a par amount just under $17.3 million and said the city would receive about $17.09 million in proceeds to cover projects and issuance costs. - Callable: bonds are first callable in 2033; staff said refinancing would be possible if rates fall. - Closing: anticipated May 21 if council acted that night.

Project list discussed by staff and adviser (amounts and shares cited by presenters): - Wastewater treatment plant expansion: project total described as about $60.65 million; Belton’s share described as roughly $12 million (presentations rounded to about $17 million of total financing for all items). The presenters said the wastewater project has been under design for several years and that some work is mandated by state requirements. - Lift station: described as the main force main lifting wastewater into the plant. - Loop 121 utility relocations: phase 2, related to Loop 121 expansion south around the expo area. - Fire apparatus: council approved financing that will reimburse the city for a fire apparatus purchased earlier this year. - Public safety center: purchase of the former Miller Heights Elementary School was noted; the council paid $750,000 for the building and plans to redevelop it as a public safety facility.

Market context and council discussion Jennifer Ritter, the city’s financial adviser, said the city delayed earlier attempts to sell because market volatility around tariff news had pushed rates higher and reduced bidder participation; waiting, she said, produced more competitive pricing. "The winning bidder was Raymond James with a 4.27% interest rate," Ritter told the council. She also said the market average for similar municipal debt in the period discussed was a bit over 5% and that the city's strong credit and fiscal practices helped secure a lower rate.

Council members asked for and received a brief summary of the projects and the financing rationale. One council member noted the legislature is considering bills that could change municipalities’ abilities to issue tax-supported debt and said the timing of the sale may allow Belton to avoid a future rush to market.

Vote and next steps A motion to proceed with the sale of the certificates passed unanimously among members present, 6–0. The council noted Council Member Daniel Bucher was absent for the meeting because of a family health issue. City staff said, if the council’s action stood, they would close the sale on May 21 and deposit proceeds into the city’s account for project use.

No formal amendments to the ordinance were recorded during the meeting; the bond attorney was available to answer legal questions and no additional legal references or statutory citations were raised during the discussion.