Lockhart council approves CO notice up to $20M, adds Lions Park; awards aquatics design contract

Lockhart City Council voted unanimously May 20 to authorize publication of a notice of intent to issue up to $20 million in combination tax-and-revenue certificates of obligation for several capital projects and to approve a professional-services contract for design of a new aquatics facility.

The council amended the CO notice to explicitly include improvements to Lions Park before approving the item. Bond counsel said adding Lions Park to the published list was prudent because the park work could represent a relatively large share of the issuance. The mayor read the amendment into the record and the motion passed 7–0.

Why it matters: The notice is an early, required step to preserve the city's ability to include debt service in the I&S portion of the fiscal-year 2026 tax rate. City staff and bond counsel said failure to start the process now would likely delay borrowing until next year and could push projects back by a year.

Key details on the CO process - The council set a maximum issuance of $20,000,000 (not an obligation to borrow the full amount). The council may elect a lower amount before final sale but may not exceed the cap set tonight. - The city's financial adviser indicated a competitive sale will be held the morning of July 15; council would consider award at its July 15 meeting and, if authorized, the bonds would close and proceeds be available in early August. - Federal tax rules cited by bond counsel require the city to expect to spend a portion of proceeds quickly (generally 5% within six months) and to complete projects within the IRS' three-year safe-harbor absent special certifications. Counsel said the city can document legitimate design and construction schedules to meet those rules. - The notice and related official statement preparation incur only modest publication costs now; further costs depend on whether bonds are sold.

How projects are described in the notice The agenda and the published notice list a set of project categories the COs would fund, including: design and construction of a new aquatics facility; acquisition and renovation of an indoor recreation center; improvements to the existing City Hall administration building; land acquisition for future police and/or fire facilities; and park improvements (the council added "improvements to Lions Park" by amendment). Bond counsel said the language as amended is sufficient to cover both improvements to the existing City Hall footprint and an accessory/annex, but certain expansions (for example, adding new council chambers) may trigger additional legal requirements such as an election.

Aquatics facility contract and budget Separately on the consent/regular agenda the council approved a professional-services contract with HAF (HAF Associates/Half) to complete design and construction administration for the new aquatics facility. City parks staff and the HAF team described the design concept and schedule: - Site: approximately 6.8 acres at the northwest corner of Center and San Jacinto streets, adjacent to property the Lockhart ISD is making available through an interlocal agreement. - Two phases: Phase 1 (leisure pool and support amenities — bathhouse, lifeguard office, mechanical room, parking and lighting) estimated at about 12 months; Phase 2 (competition lap pool, instructional pool, and a retractable-roof enclosure over the competition and instructional pools) estimated at about nine months. - Estimated city budget: $8,000,000. The city has been awarded $750,000 from Texas Parks & Wildlife; staff said they will apply for an additional $750,000 this summer. The HAF team noted the retractable enclosure installation alone is roughly $1 million to $1.5 million and can be phased in later if necessary; structural provisions for the enclosure will be included in the designs now. - Project deliverables include construction documents, bid documents, operational planning, and construction administration.

Funding context and next steps Staff and bond counsel said the CO issuance, if sold, could reimburse prior general‑fund expenditures (the reimbursement resolution on the agenda would cover purchase of property at 120 W. MLK for the indoor recreation center if approved). Bond counsel and the financial adviser noted the city's current S&P rating (AA‑) and said the proposed issue size and rating should attract competitive bids at a July sale. Council directed staff to proceed with the amended notice and to return on July 15 with bids and a final recommendation.

Quotes from meeting "If there's anything you think you may want to add, tonight would be the time to discuss that," Bart Fowler, bond counsel, told council when explaining the limits of the notice language.

What comes next Staff will finalize the offering documents and prepare for a competitive sale on July 15. The design contract with HAF begins work on final plans; staff said Phase 1 construction documents will come back to council as they are completed. If bids exceed the city's estimates, staff said they could seek additional grant rounds or re‑phase elements (for example delaying the retractable enclosure) to keep the project within budget.