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Amarillo council approves $11.2 million certificates of obligation for street resurfacing
Summary
The City of Amarillo on a 5-0 vote approved Ordinance No. 8,199 to issue $11.2 million in combination tax-and-revenue certificates of obligation to fund annual street resurfacing projects, after staff said bids produced a 3.27% fixed rate and would save roughly $400,000 versus earlier estimates.
The Amarillo City Council unanimously on a 5-0 vote adopted Ordinance No. 8,199 to issue $11,200,000 in combination tax-and-revenue certificates of obligation to fund street resurfacing and related projects.
City staff told council the bonds will be issued for roughly 9½ years at a fixed interest rate of about 3.27 percent after six firms bid this morning. Paul Jason of Specialized Public Finance told the council the low bid was from BOK Financial Services and that the final structure comes in below the previously authorized notice of intent; staff said the lower rate will save about $400,000 over the life of the debt compared with the earlier estimate presented in April.
Laura Storrs, representing city staff, summarized the plan as an annualized 10-year issuance intended to create a recurring funding stream for resurfacing and related street maintenance. Paul Jason said the legal size of the COs offered was $11,200,000 and that the proceeds would fund approximately $11,860,000 in projects because bidders included a premium that increases the amount available for projects.
Council discussion emphasized using the debt to address resurfacing, mill-and-overlay work, micro-surfacing and larger projects such as Georgia Street and Osage. Staff said the city’s AAA rating was affirmed and that closing is scheduled for July 10.
Mayor and council then called for a motion; a councilmember moved to adopt Ordinance No. 8,199 and the motion passed 5-0.
The ordinance sets up a 10-year program to provide recurring annual funds for pavement preservation and resurfacing projects, with the city to proceed with project selection and implementation according to the street plan presented earlier this year.
