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Frisco council OKs certificates of obligation to fund North Frisco infrastructure
Summary
The Frisco City Council voted 6-0 to adopt an ordinance authorizing the sale of multiple series of certificates of obligation to fund road, water, sewer and public parking projects in North Frisco; the ordinance sets issuance limits, interest caps and sale windows.
Frisco City Council voted 6-0 Tuesday to adopt an ordinance authorizing the issuance of certificates of obligation to pay for road, water and sewer infrastructure and public parking structures in North Frisco.
Tanya Anderson, the city’s director of budget and strategic planning, told the council the ordinance delegates authority to city officials to execute sale documents and establishes parameters for two series. For the taxable series (2025A) the ordinance caps aggregate principal at $72 million, sets a true interest cost cap of 7 percent and a final maturity no later than February 2047. For the tax-exempt series (2025B) it caps principal at $22 million, sets a true interest cost cap at 5 percent and limits final maturity to Feb. 15, 2045. Both series must be sold within 90 days of adoption.
Anderson said both Moody’s and S&P reaffirmed the city’s triple-A credit rating. The ordinance authorizes the city manager or chief financial officer to act as pricing officer and to close the sale under the ordinance parameters.
Councilmember Bill moved approval; Councilmember Tim seconded. The ordinance passed on a 6-0 vote.
The ordinance allows the city to move forward with financing for specified North Frisco infrastructure needs while preserving staff authority to finalize sale terms within stated limits. City staff and the city attorney were available to answer council questions during the item.
No further details about specific project timelines or contractor selections were provided at the meeting.
