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Council authorizes notice of intent to issue up to $49.3 million in certificates of obligation
Summary
The Colony authorized a notice of intent to issue certificates of obligation of up to $49,297,500 and set a March 4 meeting to consider final sale; one councilmember registered an abstention.
The Colony City Council on Jan. 7 approved a resolution authorizing publication of a notice of intent to issue certificates of obligation (COs) with a not-to-exceed principal amount of $49,297,500 and scheduled a March 4 meeting to consider the final sale.
Jason Hughes of Hilltop Securities presented the financing plan, saying the notice of intent is the first formal step in issuing COs. Hughes said the financing would likely feature a 20-year repayment term and a fixed rate; he used conservative pricing at about 4.6% for planning but indicated current market pricing in the low 4% range as of the meeting. He also told council staff would examine potential refunding of callable debt when final terms are brought back on March 4.
The COs are described broadly on the notice as funding utility projects, Community Development Corporation projects and general purpose projects. Hughes said the city will narrow final par amount and interest terms before the final sale; the March 4 meeting will include those final financial terms.
A motion to approve the notice of intent passed; the transcript records an abstention by Councilmember Robin.
The council’s vote authorizes staff to publish required notices and continue the underwriting and final-sale process ahead of the March 4 consideration.
