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Leander approves up to $132.1 million in certificates of obligation; deal priced at about 4.46%
Summary
Council authorized issuance of combination tax and revenue certificates of obligation not to exceed $132,100,000 to fund public safety, streets, water/wastewater, parks and administrative facilities; advisers reported affirmed credit ratings and a sale yielding about a 4.46% interest rate.
The Leander City Council on Sept. 18 authorized the issuance of up to $132,100,000 in combination tax and revenue certificates of obligation to finance public works and public safety projects.
Use of proceeds City staff and financial advisers said proceeds will be used for a range of capital needs, including renovating and equipping fire stations; constructing, improving, enlarging and expanding streets, bridges and pedestrian infrastructure; expanding water and wastewater systems; improving parks and recreation facilities open to the public; renovating administrative facilities; and paying related professional services and issuance costs.
Market outcome and ratings Underwriters and city advisors reported that both Moody’s and S&P affirmed the city’s ratings (Moody’s at Aa1 was specifically mentioned) and that the sale achieved an effective interest cost in the low‑to‑mid 4 percent range; the advisers stated a 4.46% interest rate was achieved on the transaction. The bonds were sold with delivery expected on Sept. 30.
Council action Council voted unanimously to approve the ordinance authorizing the issuance and sale of the certificates. City staff said final sale details—including purchaser and specific debt‑service schedules—would be provided as part of closing documents.
