Brownsville authorizes staff to seek up to $150 million in certificates of obligation to fund public-safety facility, roads and airport work

Brownsville — The Brownsville City Commission voted to authorize staff to proceed with the sale of up to $150 million in certificates of obligation, a move staff and the city's financial advisor said would front-load capital funding for a public-safety facility, street projects, park improvements and airport work.

City staff presented a delegation ordinance and supporting financial analysis prepared with Estrada Hinojosa. Dave Gordon, the city's financial advisor, summarized the city's debt profile and two pro-forma scenarios: a $150 million sale and a smaller $50 million issuance. Gordon said the city currently has roughly $233 million outstanding with about $159 million callable; in the $150 million scenario the expected par amount would be about $143 million because of expected premium, with assumed interest rates near 4.5 percent in the advisor's worksheet.

Deputy City Manager/CFO Alan Gard said the larger, front-loaded issuance is recommended in part because pending state legislation could limit the…