The Pecos City Council on July 24 approved an ordinance to issue $24,750,000 in combination tax and revenue certificates of obligation to finance water utility projects, including transmission lines and wells, under U.S. Department of Agriculture (USDA) financing terms. Councilman Arona made the motion to approve Ordinance 25-O-7-O1; Councilman Saldana seconded, and the motion carried.\n\nCity Manager Charles Lino introduced the item as related to the city’s water system and said the transaction follows USDA guidance. A representative on the phone described the financing as a USDA loan with a 39-year repayment schedule through 2064 and a fixed interest rate of 1.375 percent. The presenter said the par amount would be $24,750,000 and estimated total interest over 39 years at about $7.4 million; he also said the city’s average annual payment would be about $825,000.\n\nThe presenters explained the structure: semiannual interest payments beginning Sept. 1, 2025, and annual principal installments shown in the ordinance; bond counsel and the city’s financial adviser reviewed final pricing with council. The city manager and counsel described an administrative process that includes submitting required documents to the Texas Attorney General for review and coordinating final closing with USDA.\n\nCouncil discussion confirmed that the loan is sized for water system renovation and that the issuance should not affect the current tax rate; speakers said USDA will hold bond proceeds in escrow and will reimburse the city as project invoices are approved. The ordinance was approved in open meeting.\n\nThe council directed staff to sign closing documents, proceed with Attorney General review, and continue coordination with USDA ahead of the scheduled late-August closing date.