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Georgetown celebrates AAA rating and approves $207.5 million in bond and certificate sales
Summary
Council marked Standard & Poor's affirmation of Georgetown's AAA credit rating and approved multiple bond and certificate issuances totaling about $207.5 million; city staff reported strong investor interest and competitive bids.
The Georgetown City Council celebrated Standard & Poor's affirmation of the city's AAA credit rating and approved a package of bond and certificate sales that staff said will fund streets, parks, public safety equipment, utilities projects and other capital work.
Jennifer Ritter, a financial adviser with Specialized Public Finance, told the council that AAA is the highest bond rating and noted S&P's practice of comparing municipal credits to sovereign ratings. "It is the highest bond rating that any city can have," Ritter said. "In fact, you're higher than the U.S. government—S&P rates the U.S. at AA+." She said only about 38 cities nationwide and the state of Texas hold an AAA rating.
City staff and outside advisors said the AAA rating increased investor demand for Georgetown's sale and helped secure multiple competitive bids despite a volatile market. Nathan Parris, assistant chief financial officer, said the city received an unusually large number of bids in the current market.
The council approved the following financing actions on first and final reading or by delegated sale authority:
- Combination tax and revenue certificates of obligation (series 2025): $63,700,000, supported by property tax, sales tax, GTec and stormwater revenues; staff recommended awarding the sale to J.P. Morgan Securities after 15 bids and reported a final true interest cost near 4.36 percent.
- General obligation bonds (series 2025): $34,600,000, voter-approved projects supported by property tax for road and sidewalk projects; 15 bids received, award recommended to Piper Sandler with a reported true interest cost near 4.18 percent.
- General obligation bonds (series 2025A): $2,800,000, including the 2023 facility bond for the animal shelter (ballot-limited 20-year maximum term); eight bids received, staff recommended SWBC Investment Services with a reported true interest cost near 4.37 percent.
- Utility revenue bonds (delegated sale): up to $106,400,000 for water, wastewater and electric projects; sale authority delegated to staff with final sale expected in June 2025; anticipated maximum 25-year term.
"In this market, having AAA creates a flight-to-quality effect," Ritter said, meaning investors favored Georgetown's sale. She added that the city's consistent policies, reserves and financial management were key to the rating.
Council approved all bond and certificate items by motion and unanimous consent. Staff said proceeds will fund police and fire vehicles, parks improvements, multiple road projects including Wolf Ranch Parkway and San Gabriel Village roundabout, stormwater work, and utility capital projects. Staff also noted participation from the treasury team and that bond structures were sized and resized based on market feedback.
City staff said they will complete closing and settlement procedures with the underwriters and execute issuance documents as authorized by the ordinances. The revenue bond sale will be finalized under delegated authority in June 2025.
