Council approves parameter ordinances to issue G.O. bonds and certificates of obligation for FY2025 projects

College Station authorized the city to issue municipal debt for FY2025 capital needs by adopting two parameters ordinances setting limits and delegating closing authority for general obligation (G.O.) bonds and certificates of obligation (C.O.s). The G.O. parameters ordinance sets a maximum of $17.2 million in G.O. bonds with a maximum true interest cost not to exceed 5% and a final maturity no later than Feb. 15, 2045. Planned G.O. financings listed in the ordinance include fire station construction, senior-league baseball/soccer facilities, Thomas Park redevelopment, Lincoln Center area improvements and a central parks operations shop; the ordinance also notes unissued 2022 authorization amounts remaining for future projects. The certificates of obligation parameters ordinance sets a $17.25 million maximum issuance with comparable limits on interest cost and term. Planned CO-funded projects in the ordinance include citywide radio replacements, new water wells, the Carters Creek diversion lift station and a Carters Creek wastewater treatment plant rehabilitation and improvements program. City staff noted that major credit rating agencies reaffirmed the city at strong ratings during the budget process: S&P Global at AA+ with a stable outlook and Moody's at Aa1 with a revised outlook of positive. The council delegated closing authority to the mayor, city manager and finance officers and approved moving forward with competitive sales; staff and the city's financial advisor said the timing of sales will be monitored to achieve the best market pricing.