Keene council directs publication of notice to issue $355,000 certificates of obligation for water system work while weighing cash vs. loan

Keene — On April 15 the Keene City Council voted unanimously to publish a notice of intent to issue $355,000 in combination tax and surplus revenue certificates of obligation (Resolution No. 2025-469) to provide funds for water system improvements tied to a Texas Water Development Board (TWDB) funding award.

The publication is a procedural step that preserves the city’s options while staff continues to confirm whether the TWDB will permit Keene to satisfy the program’s 10-percent requirement with cash rather than the subsidized loan package the board originally offered. Council members spent the meeting weighing two general approaches: accept the TWDB loan structure (a 10% city obligation, 90% forgiveness) and issue certificates of obligation as notice of intent, or attempt to pay the 10% cash if the TWDB will accept that route.

Financial adviser and presenter Charles Williams reviewed options and recommended approaches the city could use to provide the city’s portion without increasing debt service or the tax rate. Williams outlined two options: pay the $355,000 directly from existing reserves (money market) and then replenish that reserve within…