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Sunnyvale approves $36 million certificates of obligation after strong investor demand
Summary
The Sunnyvale Town Council on Sept. 15 approved an ordinance authorizing the issuance and sale of $36 million in combination tax and revenue certificates of obligation. Presenters said the certificates sold at a premium and produced an all‑in true interest cost near 4.36%; the closing is scheduled for Oct. 15.
Sunnyvale’s Town Council voted unanimously on Sept. 15 to authorize the sale of combination tax and revenue certificates of obligation series 2025 that will fund a package of utilities, parks and facilities projects.
Council approved Ordinance 2025‑17 by voice vote, 7‑0. Presenters told the council that investor demand allowed the town to sell the certificates at a premium so the par amount the town will repay was reduced to $33,810,000; that principal plus the premium will provide the town roughly $36,000,000 into the project fund. Eric Maha of Hilltop (presenting as the town’s financing advisor) said the sale produced an all‑in true interest cost of about 4.36 percent.
Maha said underwriters for the transaction were Frost Bank (lead), BOK Financial and Raymond James. He told the council that orders significantly exceeded the amount offered: the packet shows investor orders totaling roughly $106.3 million for $36.0 million of certificates. A copy of the town’s rating report presented to the council shows the town’s rating was affirmed at AA+. Closing of the transaction is scheduled for Oct. 15, according to the presentation.
Councilmember Clark thanked staff and the underwriting team for the outcome. Town staff noted the proceeds will be used on a mix of utility, parks and facility projects and that the town structured the sale to allow flexibility among project uses if actual bid costs differ from estimates.
The presentation included timing and payment information: the packet shows the first debt service payment beginning in February 2026 and an annual payment schedule through final maturity, and it notes the town would have the option to retire or refinance the certificates early. The specific callable/refinance date stated in the presentation was unclear in the transcript of the meeting packet.
The council vote on the ordinance was recorded as a 7‑0 approval. With council approval, staff will file the documents with the attorney general and proceed to closing on Oct. 15.
