Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Debt topic
No spam. Unsubscribe anytime.
Council authorizes notice of sale for $7.93 million in certificates of obligation for water, wastewater projects
Summary
The council approved a resolution to publish a notice of sale to issue $7,930,000 in certificates of obligation for water and wastewater projects; staff said drainage projects originally planned for debt funding will be covered from strategic project fund savings, allowing a reduced issuance.
The City of Fair Oaks Ranch council voted July 17 to authorize publication of a notice of sale to issue $7,930,000 in certificates of obligation to fund water and wastewater capital projects. The action formally opens the competitive bidding process for the debt issuance.
Summer Fleming, the city's director of finance, told council the issuance is the second phase of a multi-year debt plan for utility projects. The city previously issued $3.7 million in certificates of obligation in September 2024; a further issuance is planned in 2026. Fleming said a recent decision to use savings in the strategic projects fund for two planned drainage projects lowered the total borrowing need from a previously advertised $9.5 million to $7.93 million for this issuance.
Fleming also explained expected customer impacts from the planned debt structure. In the packet material staff showed that debt-service on the typical water utility portion of the bill would increase by about four cents per month under the current plan, while the wastewater debt-service component would drop slightly.
Council action: Councilmember Keith moved and Councilmember Jonathan seconded a motion to adopt the resolution authorizing a notice of sale for $7,930,000 in certificates of obligation for water and wastewater projects. The motion passed on a voice vote; the transcript shows "All in favor, please say aye" with affirmative response and no roll-call tally recorded.
Why it matters: Issuance of certificates of obligation allows the city to borrow for capital projects without voter authorization when the financing is for public purposes and when required statutory notice is given. Council previously planned a three-phase financing approach; this action advances the second planned issuance.
Ending: Staff will proceed with publication of the notice of sale and advance the competitive bidding and closing process per the city's financing timetable.
