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Rowlett council authorizes publication of notice of intent to issue up to $15.05M in certificates of obligation
Summary
City council approved a resolution directing publication of a notice of intent to issue up to $15,050,000 in certificates of obligation as part of a multi-year capital plan; the notice preserves the city's option to issue debt before possible state statutory changes take effect.
The Rowlett City Council on May 20 authorized publication of a notice of intent to issue certificates of obligation (COs) for up to $15,050,000, a procedural step that preserves the city’s ability to issue those bonds later this year if council chooses.
City finance staff and the city manager told the council the action is precautionary: staff drafted the notice because several bills pending in the Texas Legislature could limit municipal authority to issue COs or tax notes after Sept. 1, 2025. Publishing the required newspaper notice is a prerequisite for a later council vote to authorize an actual issuance; the city manager and finance director emphasized that tonight’s vote does not commit the city to sell debt but preserves the option to complete planned capital investments under the current debt rules.
City Manager David Hall reviewed the capital strategy the council adopted in 2024: the city planned to transition certain capital spending away from operating revenues and leases to public debt instruments supported by interest and sinking (I&S) tax resources. The 2025 budget included a multi-year plan funded in part by certificates of obligation and tax notes. Staff said issuing the remaining planned COs and tax notes in the current fiscal year would allow the city to avoid the potential statutory changes and fully fund prioritized capital projects already in the three-year capital plan.
The city listed projects tied to the issuance in its packet, including road and alley work, sidewalk connectivity, concrete and asphalt repairs, certain screen wall repairs, and public-safety apparatus. Staff recommended publishing a notice for up to $15,050,000 in COs; any final decision to issue would return to council, with the next potential authorization slated for July 15.
Councilmember Schoop moved to adopt the resolution directing publication of the notice of intent; Councilmember Bowers seconded. The council voted 6-0 in favor.
Speakers on this item included Finance Director Michael **** and City Manager David Hall, who presented the fiscal context and projected need to preserve issuance authority.
