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Hitchcock OKs issuance of combination tax-and-revenue certificates of obligation at 3.95%
Summary
The Hitchcock City Council authorized sale of combination tax-and-revenue certificates of obligation series 2025 to raise roughly $1.4 million, accepting a bank bid with a 3.95% coupon, 10-year amortization and a 4.517% true interest cost.
The Hitchcock City Council authorized an ordinance to issue combination tax-and-revenue certificates of obligation, series 2025, to raise approximately $1,400,000 to fund city projects. The council voted unanimously to award the sale after hearing a presentation on the bid results.
Cameron Thatcher, financial advisor with Huntington Capital Markets, told the council the city solicited bids and received eight offers. “You can see that the highest bid that we received is 5.49%. And the lowest bid, which is the one that I recommend that we proceed with and seek authorization tonight, is 3.95%,” Thatcher said. He said the recommended bid is callable at any time and that the all-in true interest cost is 4.517%.
Thatcher said the city had earlier contemplated about $3,500,000 in certificates but elected to issue a portion now. He said the structure uses a 10-year amortization, which helped the city secure the lower rate. After questions from council members, a motion to approve the ordinance passed with “all in favor” and no opposition.
The council did not record a roll-call vote naming individual yea or nay votes in the transcript. Thatcher said the lowest bid came from a local banking bidder and emphasized the flexibility of a callable instrument; he also noted the city may return later for a second issuance to cover remaining needs.
