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Council approves sale of $2025 certificates of obligation after favorable bids, S&P affirms rating
Summary
Council adopted an ordinance authorizing the issuance and sale of combination tax and revenue certificates of obligation series 2025 after staff reported six competitive bids and a low net interest cost of about 4.24%, citing a favorable Standard & Poor's rating and anticipated savings versus budgeted interest.
The Copperas Cove City Council on Aug. 5 adopted Ordinance No. 2025-21 authorizing the issuance and sale of City of Copperas Cove combination tax and revenue certificates of obligation, series 2025. Staff said the sale will finance equipment, facility improvements and construction projects included in the FY2024-25 capital plan and that repayment schedules align with asset lives (seven years for equipment, 20 years for facilities).
Budget Director Ariana Beckman and the city’s financial adviser, Gary Kimball, reported the market received the issue well: six bids were received and RW Baird submitted the low bid with a net interest cost near 4.24%, which Kimball said compares favorably to the 4.7% used for budgeting. Kimball said the pricing equates to about $1,074,000 in savings over the life of the transaction versus the budget assumption.
City Manager Ryan Havela and staff highlighted the city’s improved credit profile. Kimball noted Standard & Poor’s affirmed a strong rating and praised the city’s “stable financial performance with exceptionally strong reserves and liquidity supported by conservative budgeting practices, effective budgeting oversight, and comprehensive long term planning.” Councilmember Sean Alzona moved adoption of the ordinance; the motion passed unanimously.
The ordinance also authorized execution of a paying-agent/registrar agreement and approval of the official statement. Staff said tax-supported debt service was already included in the property tax rate adopted last year and that enterprise-funded projects will be paid from enterprise revenues.
Council action: motion to adopt Ordinance No. 2025‑21 to issue the certificates carried on a recorded voice vote with all members voting in favor. Staff noted final pricing and terms were presented by the city’s financial adviser via remote participation and that bond counsel was available for any legal questions.
Next steps: staff will complete closing documents and proceed with the sale consistent with the approved ordinance; proceeds will be applied to the capital projects listed in the city’s capital plan.
