Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Bonds topic
No spam. Unsubscribe anytime.
DeSoto approves roughly $48.55 million in certificates of obligation to fund streets, parks and aquatic center
Summary
The DeSoto City Council authorized the issuance of combination tax and revenue certificates of obligation Series 2025 to pay for capital improvements including street repairs, traffic signals, parks, water/sewer projects and the aquatic and recreation center; the sale drew a low bid of 4.17% and the ordinance passed 5–2.
The DeSoto City Council on May 6 approved an ordinance authorizing the issuance of City of DeSoto, Texas combination tax and revenue certificates of obligation Series 2025 to fund capital improvement projects including streets, traffic signals, alley and drainage work, water and sewer projects, the city’s aquatics and recreation center and Nance Farm improvements.
City staff and the city’s financial advisors presented final sale results after bids were received earlier that day. “We asked for bids to come in today at 10 a.m., and you got four bids this morning with Wells Fargo Bank coming in as a low bidder for the city certificates of obligation,” Jorge Delgado of Hilltop Securities told the council. Delgado said the low bid produced a fixed interest rate of 4.17% and that the sale was consistent with the financing plan presented to council in February.
The sale will fund $48,550,000 in projects, Delgado said, below the notice of intent maximum of $49,500,000 that was published. Bond counsel Brian King said the ordinance will include a general description of the project categories; the ordinance will not list every project line-item but will identify categories such as streets, parks and water/sewer work.
City staff said the certificates carry a 20-year amortization and the city is targeting a May 29 closing, with the first debt payment occurring in fiscal 2026 to allow the city to account for the obligations in the next budget. Assistant Finance Director Lakita Sutton told council the city’s credit ratings were recently affirmed at AA by the rating agencies.
Council members asked staff to clarify publication language in the packet (a staff member noted the packet language was carried over from a prior report and would be corrected) and to confirm that projects such as the aquatics center are expected to be closed out with this funding absent unforeseen conditions. “If it is a city-requested change order, then the city would have to pay for it. If it is according to the guaranteed maximum price, then the contract covers it,” a staff representative said when council pressed on potential extra costs.
The ordinance was moved, seconded and adopted on a hand vote that the clerk recorded as passing 5–2. Councilmember Andre Byrd moved to approve the ordinance and Councilmember Crystal Chisholm seconded. The final ordinance will be updated with the exact principal amount, interest rate and maturity schedule from the sale documents.
Clarifying details provided during the meeting: the certificates were offered for sale on May 6, the target funded amount is $48,550,000, Wells Fargo submitted the low bid at 4.17%, the not-to-exceed published amount was $49,500,000, the targeted close date is May 29, and the first debt service payment is scheduled in fiscal year 2026.
The council’s action authorizes staff and bond counsel to finalize the sale documents and proceed to closing.
