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Mission approves $10 million bond sale; rating affirmed and no tax rate increase planned
Summary
City Council approved the issuance ordinance authorizing the sale of $10 million in bonds at about 4.63% interest; staff said the sale does not exceed the city’s current tax rate and the funds are expected to close July 1 for capital projects.
City Council on Monday approved an ordinance authorizing the issuance of $10 million in bonds for various capital projects and accepted post‑sale terms presented by the city’s financial advisers.
Bobby Villalba, the city’s financial adviser, told council the bonds were marketed the morning of the meeting and priced at a true interest cost near 4.63 percent. He said demand exceeded the offering and the city sold the $10 million issuance with orders larger than the par amount.
Villalba noted both S&P and Moody’s had reaffirmed the city’s ratings and that the issuance, as structured, does not cause the city to exceed its current interest and sinking tax rate. “With this issuance, we do not exceed that tax rate, so we’ll continue to maintain the tax rate,” Villalba said. He said the transaction is expected to close July 1, when funds will be delivered to the city; he also said conservative growth assumptions were used in the post‑sale debt capacity analysis.
Council voted unanimously to adopt the ordinance authorizing the issuance (recorded as ordinance number 5656). Staff and advisers said the city can consider refinancing in the future if market conditions improve.
