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Cedar Hill council authorizes certificates of obligation and tax notes after staff reports favorable bids and credit ratings
Summary
The council adopted ordinances approving combination tax and revenue certificates of obligation (Ordinance No. 2025-852) and tax notes (Ordinance No. 2025-853). City staff reported competitive bids (4.33% TIC for COs; 3.28% TIC for tax notes) and S&P/Moody’s ratings of AA and Aa1.
Cedar Hill — The Cedar Hill City Council voted unanimously Tuesday to adopt two financing ordinances authorizing the issuance and sale of debt: Ordinance No. 2025-852 (combination tax and revenue certificates of obligation, Series 2025) and Ordinance No. 2025-853 (tax notes, Series 2025).
City staff presented the financing results during the meeting. City staff member Quincy Wen told council members the certificates of obligation were competitively bid, with four underwriters submitting proposals and Fidelity Capital Markets offering the lowest true interest cost (TIC) at 4.33 percent. Staff said projected proceeds to the city for the certificates were $9.97 million, with delivery and fund receipt expected June 26, 2025.
For the tax notes, Wen said the city received eight bids and that TD Securities provided the lowest TIC at 3.28 percent; those notes share the same June 26 delivery date and are structured with seven-year amortization, the staff presentation said.
Wen also told the council that the city obtained external credit ratings for the financings: S&P returned an "AA" rating and Moody’s an "Aa1" rating. Wen said those ratings were a factor in the favorable pricing the city received.
Why it matters: The ordinances authorize debt that funds capital projects and cashflow needs; the competitive bids and credit ratings affect the borrowing cost and long-term debt service for the city.
Council formally considered and adopted the ordinances. For Ordinance No. 2025-852, a motion to adopt was made and seconded and the mayor noted the motion carried unanimously. For Ordinance No. 2025-853, council similarly moved, seconded and approved the ordinance by unanimous vote. Council members flagged that the first fiscal-year debt service payment on the tax notes (fiscal year 2026) would include a larger payment (approximately $3.2 million debt service for that year, as shown in the staff packet).
Quotes from staff summarized pricing and ratings: "Fidelity Capital Markets came in with the lowest bid at 4.33%," city staff member Quincy Wen said. Wen also summarized Moody’s and S&P ratings and emphasized the city’s strong fiscal position as reflected in the pricing.
The ordinances authorize the levy of ad valorem taxes to pay the debt and include the approval of paying agent/registrar agreements and the distribution of an official statement. The council recorded the approvals as unanimous; individual roll-call votes were not read aloud.
