Cleburne council authorizes notice of intent to issue $15.5 million in certificates of obligation
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Summary
City council approved publication of a notice of intent to issue certificates of obligation to finance roads, design of a new public safety facility and renovation of a city building, with city staff and Hilltop Securities outlining a projected $15.5 million program and a 30-year amortization.
The City of Cleburne City Council on a unanimous vote authorized publication of a notice of intent to issue certificates of obligation that city staff said would finance road work, the design phase of a new public safety facility and conversion of an existing building into a citizen service center.
City staff and the city's financial advisor presented the financing plan as a next procedural step rather than final approval. "This evening, what we're here to do is the next steps, which is get your authorization for the notice of intent," said Mr. Boonstra (staff member). Amber Chen of Hilltop Securities told the council the certificates of obligation for 2025 would fund the road projects, design and engineering for the public safety facility and the renovation of a bank building for city use: "The presentation today is about the funding of, certificates of obligations, years 2025, which will be used to fund the road projects, the designing and the engineering of the new public safety facility, and the renovation of the bank building."
Why it matters: City staff said the three-part project totals $15.5 million and would be paid over time from the city’s property tax levy. Council authorized publishing the required legal notices so the city can move toward a targeted sale date.
Key details: Staff’s preliminary breakdown showed approximately $7.2 million for roadway projects, $5.4 million for initial design/engineering and potential site work for a public safety facility, and about $2.9 million to convert a currently owned building into a citizen service center, for a projected total of $15.5 million. Hilltop’s model used a 30‑year amortization and assumed the city’s reported credit ratings (S&P: AA; Moody’s: Aa2). The presentation showed an estimated average annual principal-and-interest payment of a little more than $1 million under the model’s assumptions and projected no immediate property‑tax rate increase to current levels over the near term.
Schedule and next steps: Staff said the city will publish a notice of intent (first publication targeted for May 31, with a second posting June 7) and pursue a targeted sale of the certificates around July 22, with bond delivery and receipt of funds roughly 29 days after sale. Final pricing would return to council for approval after the sale.
Council action: Councilman Derek Weathers (single-member District 1) moved to approve the resolution to publish the notice; Councilman John Warren (single-member District 4) seconded. The motion carried unanimously.
Financial and procedural limits: Presenters emphasized the publication and sale steps are procedural and that final terms and pricing will be presented after sale. Council did not adopt final debt issuance documents at this meeting.
What remains: Final pricing, bond sale results and any adjustments to the project list or amounts will be presented to the council at a later meeting before final authorization and delivery of funds.
