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Trophy Club council approves notice of intent for 2025 certificates of obligation; estimated tax-rate impact modest
Summary
Council approved a notice of intent to issue combination tax and revenue certificates of obligation (Series 2025) to preserve the town’s ability to borrow for capital projects; staff said issuance would likely raise the I&S tax rate from 0.099427 to about 0.1031 if issued and would fund streets, sidewalks and a maintenance shop remodel.
The Trophy Club Town Council on June 23 voted to approve a notice of intent to issue combination tax and revenue certificates of obligation, Series 2025, a procedural step that preserves the town’s ability to borrow for capital projects later this summer.
April (staff member) presented the proposal and described the action as “a required legal formality that initiates the public notice process” and emphasized that the notice itself “does not authorize the issuance of debt at this time, but rather preserves the town’s ability to move forward later this summer should council choose to proceed.”
According to the staff presentation, proceeds from the proposed issuance would support street improvements on Forest Hill Drive, Paint Rock Court, Palmetto Court and Oakmont Drive; sidewalk work along Parkview Drive, Durango Drive, Skyline Drive and Creekside Drive; and a remodel of the streets and parks maintenance shop. April said the notice covered an estimated amount that she misstated during the presentation — she first said “$8,000,150” and then corrected to “$150,000.” The town’s preliminary analysis projects the interest and sinking (I&S) tax rate of 0.099427 to increase to roughly 0.1031 if the certificates are issued, an incremental change of about 0.003673.
Jack McLaney of Samco Capital, the town’s financial advisor, told council the proposed schedule staggers future issuances so that when existing debt falls off it can be replaced without exceeding the town’s I&S tax-rate goal. Staff told council the debt service would be incorporated into the town’s fiscal 2025–26 budget if the certificates are issued. The staff presentation also included a long-range plan outlining potential future bond issuances through fiscal 2040 totaling up to $48,735,000.
Council approved the notice of intent. April and Samco emphasized that the notice does not obligate the town to borrow; a future council action would be required to finalize any sale once bids are received later in the summer.
