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The Colony approves $48.5 million certificates of obligation to finance capital projects
Summary
The Colony City Council approved the issuance and sale of combination tax and limited surplus revenue certificates of obligation series 2025 to provide roughly $48.5 million for budgeted capital projects and to reimburse the general fund.
The Colony City Council approved the issuance and sale of the City of The Colony, Texas, combination tax and limited surplus revenue certificates of obligation series 2025, authorizing roughly $48.5 million in proceeds to fund capital projects and reimburse the general fund.
Hilltop Securities representative Jason Hughes summarized the sale and market context, saying the city received nine competitive bids and “Wells Fargo Bank was the winning bidder at 3.787.” The final par amount sold was $45,910,000, producing approximately $48,528,000 after premium, which Hilltop said will cover issuance costs and leave the remainder to the city.
The council heard that the bond proceeds will pay for projects already approved in the city’s capital budget, with roughly 37.3% allocated to the general fund, about 9.3% to utility projects and $1.9 million to community development corporation projects. Hughes said the city’s strong credit ratings (S&P AA+ and Moody’s Aa2) and market timing produced favorable terms, lowering expected debt service by an estimated $3.2 million over the life of the issue and about $162,000 in annual debt service versus earlier estimates.
City staff confirmed the issuance will be structured as level annual debt service and will include the customary call feature to permit refinance or early pay-off at the council’s discretion. Tim Miller, city staff, introduced the Hilltop presentation and said the certificates will reimburse the general fund for capital spending advanced earlier in the fiscal year.
Council voted to approve the ordinance authorizing the issuance. No roll-call tally was read into the record; the presiding mayor called for a voice vote and the motion passed.
What it means: The certificates will fund capital projects the council previously included in the adopted budget and restore the general fund for cash used on those projects earlier in the fiscal year. The city’s advisors emphasized that the low rate and strong credit ratings saved taxpayers and ratepayers money compared with earlier estimates.
Votes at a glance: - Ordinance authorizing issuance of City of The Colony, Texas, combination tax and limited surplus revenue certificates of obligation, series 2025 — motion to approve made from the dais (unnamed in the transcript), seconded by Councilmember Wade; outcome: approved. - Consent agenda (items 4.1–4.5) — motion and second made earlier in the meeting; outcome: approved. (Items on the consent agenda were not read into the transcript.)
The council adjourned regular session and moved to an executive session after the vote; no executive-session deliberations were disclosed on the record.
