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Whitehouse council reviews $15 million certificates of obligation amid pending Texas debt caps
Summary
City staff briefed the Whitehouse City Council on plans to issue up to $15 million in certificates of obligation for city hall, a new fire station, parks and public-works projects, and outlined how proposed Texas legislation could limit the city’s ability to borrow without voter approval.
City of Whitehouse officials discussed a proposed $15 million certificates-of-obligation financing package and how pending Texas legislation could limit the city’s ability to issue debt without voter approval. City staff presented scenarios for debt service, timing for a potential issuance and alternatives if state caps take effect.
The presentation at the May 13 workshop outlined that Senate Bill 1024 and House Bill 19 — both under consideration in the Texas Legislature and likely to be revised as substitute language — would place caps on municipal borrowing by referencing recent debt-service averages or by applying a percentage cap. “There are certain items pending in the Texas state legislature right now that could impact the city's ability to issue future debt,” staff member Black said, urging the council to consider a notice of intent at the May 27 council meeting so the city would remain positioned to proceed if the bills do not pass.
The briefing described certificates of obligation (COs) as a flexible debt instrument commonly used by Texas cities for infrastructure that can be repaid from…
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