Pampa approves amended ordinance to issue Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2025 after maturity error fixed

The City of Pampa City Commission on Feb. 24 adopted Ordinance No. Eighteen-nineteen, an amended and restated ordinance authorizing the issuance of the city’s Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2025.

Andrew Friedman of Samco Capital Markets, the city’s financial advisor, told commissioners he and the city’s bond attorney discovered an error in the notice of intention for the sale that reported a maximum maturity date inconsistent with the securities’ pricing. The Texas Attorney General’s office, which reviews municipal bond sales, flagged the discrepancy before closing and would not authorize closing on the original terms, Friedman said.

Friedman said the team worked with the bidder (the Baker Group) to remove the incorrect 2045 maturity, preserve the previously locked interest rates and still generate the $4 million needed. He told the commission that shortening the amortization by one year produced a slightly lower average interest cost—reducing the true interest cost from roughly 3.97% to about 3.94%—which Friedman estimated would save approximately $103,000 in interest over the life of the issue. He said the change raises annual payments by less than $10,000 but that the utility system and general fund can absorb the increase and that the adjustment did not affect the tax-rate analysis or the prior pro forma for the utility system.

Friedman apologized for the original error and described the correction as a satisfactory solution that allowed the city to proceed. The commission voted to adopt the amended ordinance; a closing was expected in two days and Friedman requested two signatures in place of the mayor to finalize documents prior to closing.

The ordinance text presented to commissioners describes issuance of the certificates, levy of an ad valorem tax for payment, pledge of system revenues as security, approval of related engagement agreements and an official statement, and authorization for necessary execution steps for sale and delivery.