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Council authorizes $2025 certificates of obligation sale; RW Baird identified as winning bidder
Summary
The council adopted Ordinance No. 2025-21 authorizing the sale of combination tax and revenue certificates of obligation for 2025; staff and advisers reported a competitive market and a low bid with net interest cost of about 4.24 percent from R.W. Baird.
The Copperas Cove City Council on Aug. 5 adopted Ordinance No. 2025‑21 authorizing the issuance and sale of the City of Copperas Cove’s combination tax and revenue certificates of obligation, series 2025. The sale will finance equipment, facility improvements and construction included in the city’s capital plan.
Arianna Beckman, the city’s director of budget, said the certificates align repayment terms with asset life (seven years for equipment and vehicles; roughly 20 years for facilities and construction) and follow the city’s debt policy. She noted the city’s double‑A bond rating and said the property tax rate adopted last August already includes the debt service for tax‑supported projects; enterprise activities (water, sewer, sidewalks, drainage and street maintenance) will be paid from enterprise revenues.
Gary Kimball, the city’s financial adviser, joined by video and reported the bidding results: the city received six bids in a competitive market and R.W. Baird & Company submitted the low bid with a net interest cost of about 4.24 percent. Kimball said that rate compares favorably with the 4.7 percent the city had used in budgeting and represents roughly $1,074,000 of lower interest cost over the life of the transaction (about $54,000 per year).
Council discussion was brief and focused on the competitiveness of the sale and staff’s long‑term financial improvements. After presentation of the recommended award, a motion to adopt the ordinance and proceed with the sale passed by voice vote.
Formal action: Council adopted Ordinance No. 2025‑21 authorizing the issuance and sale of the City of Copperas Cove, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2025. The motion carried by voice vote; council recorded no opposing votes during the item.
Background: Beckman said the certificates are a key component of the FY 2024–25 capital funding plan and that enterprise revenues will support utility‑related projects. Kimball noted the reaffirmation of the city’s double‑A rating by the rating agency and praised the city’s reserves and budgeting practices.
Ending: Staff will proceed with closing the sale under the terms presented and return any required closing documents to council as needed.
