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Prosper council approves bond ordinances to fund wastewater, parks and street projects
Summary
The Prosper Town Council on June 10 approved parameters ordinances delegating sale of two bond issues: up to $34.85 million in waterworks and sewer revenue bonds and a general obligation refunding and improvement issuance of roughly $50 million that includes about $19.45 million in new money for streets.
The Prosper Town Council on Tuesday unanimously approved parameters ordinances that authorize staff to sell two bond issues to finance water, wastewater, parks and street projects.
Finance Director Chris Landrum told the council the revenue bond issuance would be “roughly $34,000,000” for new wastewater projects, and that the parameters ordinance sets a maximum not-to-exceed amount of $34,850,000, a maximum true interest cost of 5 percent and a maximum maturity of 20 years.
The council also adopted a parameters ordinance for a general obligation (GO) refunding and improvement bond sale the same night. Landrum said that issuance would total “just south of $50,000,000,” including about $19,450,000 in new money for street and transportation projects and roughly $30,000,000 in callable debt available for refunding.
Why it matters: The revenue bonds will fund wastewater priorities that Landrum listed — a wastewater treatment plant installation and a parallel interceptor among the items shown to the council — while the GO new-money portion will cover street projects such as First Street, Coit Road, Coleman and Legacy and associated phases.
Council and bond advisors discussed timing, market conditions and refunding potential. Jason Hughes, the town’s financial advisor with Hilltop Securities, said current market yields meant the town would likely see 10-year market rates “at 3.25 to 3 4 percent,” and that staff had identified roughly $20 million of currently callable bonds that could produce savings if refunded. Hughes said earlier runs showed potential debt-service savings around a 3.4 percent present value threshold on a subset of callable issues.
Council members asked about language in the parameters ordinances that delegates pricing authority to staff through mid‑2026. Hughes and staff said the extended delegation is common practice to provide flexibility for pricing and execution, but that the town could shorten the delegation period if council preferred.
Council action: For the revenue bonds (agenda item 11) the council approved a parameters ordinance delegating authority to staff to proceed with the sale under the stated limits. For the GO refunding and improvement bonds (agenda item 12) the council approved a separate parameters ordinance and delegated sale authority for the combined refunding and new-money issuance. Both motions passed unanimously.
What’s next: Staff indicated the revenue bond sale would occur on or after Aug. 12, 2025, with final pricing determined by delegated officers; refunding selections will be driven by which callable series produce cost savings at the time of pricing.
Details cited at the meeting are drawn from the finance presentation and remarks by the town’s financial advisor.
