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Hurst council approves $4.57 million certificates of obligation for infrastructure repairs
Summary
The Hurst City Council approved issuance of $4,570,000 in certificates of obligation to fund street, drainage, water and wastewater repairs. The sale produced a 4.11% average borrowing cost and a $106,000 cash premium from the winning bidder, Raymond James.
The Hurst City Council voted to adopt Ordinance 2600, authorizing the issuance of $4,570,000 in Tax and Waterworks and Sewer System Limited-Pledge Revenue Certificates of Obligation, Series 2025, on first and final reading.
City staff and financial advisers said the certificates will fund basic infrastructure projects including streets, drainage, water and wastewater work. Nick Boulash of Hilltop Securities told the council the bonds sold with a final par amount of $4,570,000 and an average borrowing cost of 4.11%. Boulash said Standard & Poor’s affirmed the city’s rating at “AA+” and that the winning bidder was Raymond James & Associates. The winning bid included a $106,000 cash premium paid to the city, which Boulash said reduced the city’s average cost below earlier projections.
Assistant city staff noted the issuance was timed to replace maturing debt and that the new certificates are expected to “fit into” the city’s existing annual debt-payment levels; staff said some prior debt had been paid off and the new issuance would not increase the city’s repayment burden beyond current totals. Bond counsel Bob Dransfield attended as the city’s attorney on the transaction. Boulash said a preliminary official statement has been prepared and that the final official statement will reflect definitive pricing and distribution to investors.
The council motion to adopt Ordinance 2600 carried on voice vote. The ordinance was presented and approved on first and final reading.
