Cibolo council approves $11.5M certificates, $2M in bonds after credit upgrade

The Cibolo City Council on Feb. 11 authorized two financings — $11.5 million in certificates of obligation and a $2 million tranche of voter‑approved general obligation bonds — to fund the city’s capital improvement plan and initial work on the public safety and animal care projects.

The measures follow a one‑notch rating upgrade from Standard & Poor’s that the city’s financial adviser said helped produce more bidders and lower interest rates. Victor Quiroga, the city’s financial adviser, told council the winning bid for the certificates came from BOK Financial Securities at a 3.80% fixed interest rate; the $2 million GO tranche drew a 3.87% winning rate. “We initially budgeted an interest rate of 4.12% but we actually came in at a 3.8%,” Quiroga said. He added the upgrade saved taxpayers an estimated $55,000 on the certificate financing and about $25,000 on the GO tranche.

The council adopted separate ordinances to authorize each issuance. The financings are scheduled to close March 12, with debt service beginning in the city’s next fiscal year. Quiroga said the certificates will support the city’s five‑year CIP and that the $2 million GO issuance is the first portion of a $26.1 million voter‑authorized bond program for a public safety facility and animal care facility.

Nut graf: The votes clear near‑term funding for planned road and facility projects and come after credit‑rating agency praise for the city’s fiscal policies, strong reserves and cybersecurity practices — factors staff and advisers said led to stronger market interest and lower borrowing costs.

Councilman Joel Hicks moved the ordinance for the certificates and Hicks and Councilwoman Donetta Roberts seconded the GO bond ordinance; both measures passed unanimously, 7–0.

What council heard and next steps - Financial adviser presentation: Victor Quiroga reviewed bid results and said 12 firms bid the certificates offering competitive interest rates; eight firms bid the GO tranche. He recommended council approve both ordinances at tonight’s meeting so proceeds could be available March 12. - Effect on taxes: Quiroga said the full $26.1 million bond program is projected to raise the city’s tax rate by an estimated 3.16 cents per $100 of valuation when fully issued; the $2 million tranche carries an estimated impact of about 0.33 cents. - Administrative follow‑up: Quiroga agreed to forward his presentation to the city manager for distribution to council.

Ending: With council’s unanimous vote, the city manager and finance staff will complete closing steps and place the proceeds into the projects’ accounts for planned CIP work and the first stage of the voter‑authorized bond projects.