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Weatherford council authorizes publication of intent to issue up to $30 million in certificates of obligation
Summary
Council approved staff's request to publish notice of intent to issue certificates of obligation not to exceed $30 million to fund street improvements, Fire Station 5 design and park and equipment projects; staff outlined publication dates, estimated annual debt service and project allocations.
City staff requested and the council approved authorization to publish notice of intent to issue certificates of obligation (COs) Tuesday, a required first step under state law before the city may vote to issue debt.
"Staff is requesting the council to authorize publication of our intent to issue certificate of obligations in the amount not dollars," Dawn Brooks said in presenting the item; she later described the proposed principal amount as "not to exceed 30,000,000" and an estimated annual debt service of $2,400,000.0.
Brooks said the notice must be published in the newspaper of general circulation for two weeks and at least 45 days before council may vote on actual issuance; staff said the notice will appear in the Weatherford Democrat on Aug. 16 and Aug. 23 and that the certificates are planned to be priced and sold in October. She told council the certificates would be secured by a pledge of ad valorem tax revenues within the existing tax-rate structure and that staff expects available debt capacity due to scheduled maturities of prior refunding bonds.
Staff presented an estimated project breakdown for the CO proceeds: $18,000,000 for Lamar Street and Clermont Boulevard improvements, $10,000,000 to build Fire Station 5, $2,500,000 for a Holland Lake Park renovation and $1,500,000 for a public-works equipment storage facility. Brooks described those as the projects established as council priorities during the May retreat and through a citizen survey that identified roads as the top priority.
Councilmember Luke Williams moved for approval of the resolution to publish the notice; Mayor Pro Tem Zach Smith seconded the motion. The council voted by its electronic touchscreen system and the motion passed.
Why it matters: authorizing publication begins the legal timeline to issue debt that would fund multi-year street projects, design and construction of a fire station and park improvements. Staff said issuance timing is intended to take advantage of debt-service capacity created by maturing obligations.
Notes on figures and process: staff stated a principal "not to exceed" $30,000,000 and an estimated annual debt service of $2,400,000. The staff presentation included project allocation figures that were presented as estimates for planning and design; the publication authorization does not itself commit the city to any final construction contracts or borrowing terms, which require later council votes and legal procedures.
