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Council authorizes sale parameters for up to $54 million in general‑obligation bonds to fund street projects
Summary
The council approved an order setting parameters to issue up to $54 million in general‑obligation bonds to fund voter‑authorized street projects; staff expects to price about $49 million next week and reported AA+ ratings from S&P and Fitch.
The Lubbock City Council on March 25 adopted an order authorizing the issuance of general‑obligation bonds in parameters not to exceed $54,000,000 to fund street projects approved by voters in prior bond elections.
Finance staff and outside municipal advisors reported the city expects to price approximately $49,000,000 of bonds that correspond to the voter‑approved 2022 and 2024 street bond authorizations. Advisors said the bonds would be structured as 20‑year level debt with a 10‑year optional call and that preliminary indications put the all‑in true interest cost near 4.31 percent (with a 20‑basis‑point pricing cushion discussed). Municipal‑market conditions were described as favorable because supply has not fully met demand for new‑issue product.
Bond counsel and advisors reported that both S&P and Fitch affirmed the city’s general‑obligation ratings at AA+. The presentation noted strong reserve levels, formal financial policies, and capital planning as factors in the ratings.
Joe Jimenez, finance staff member, explained that pricing was scheduled for April 1 with expected delivery of proceeds around April 30. Councilman Collins moved approval; Dr. Wilson seconded. The motion carried unanimously.
The order delegates execution of closing documents to staff and establishes parameters for pricing; will‑call and refunding features were discussed as standard options for future refinancing.
