Waco council approves ordinance to proceed with sale of certificates of obligation amid volatile markets

The Waco City Council on April 15 voted to approve an ordinance authorizing the city to proceed with the issuance of one or more series of combination tax and revenue certificates of obligation (COs) that will fund capital projects in the city's 2025 plan of finance. The ordinance was presented on first and final reading under Texas Government Code (referenced in the record as the legal authority for the parameters ordinance).

City Attorney Hamilton Carroll read the ordinance summary into the record. Staff and the city—s finance advisers told council the action authorizes publication of an offering document and allows the city and its underwriting team to market and, if conditions permit, price the bonds as soon as next week. The council approved the ordinance by recorded vote.

Blake Roberts of PFM, the city's financial adviser, said Waco's credit ratings were affirmed and described them as "double A 1, double A plus," which staff said will help in the current market. Roberts and other advisers told council the market had experienced recent swings tied to tariff news and investor reactions, but that rates had shown some improvement over the prior two days. Roberts said a blended 20- and 30-year sale would likely land in the mid-4 percent range based on market conditions at the time of the hearing: "we are ... right around 4.5%. The 30 year piece is at about 4.75% or so," he said.

Advisers outlined a contingency plan: staff intends to post the preliminary official statement as soon as the market appears stable, pre-market the bonds, and price them when conditions allow. The team has delegated authority for up to 90 days as allowed by the parameters ordinance; if market conditions deteriorate, staff may delay pricing, or pull the offering document and reassess timing.

City Manager (interim deputy) Ford told council he would pause the issuance if advisors projected all-in pricing above a locally discussed threshold: "if we get above 5, if Blake comes to me and says we're above 5, I'm not gonna move forward on the issuance," Ford said, adding he would update council if staff recommended pausing.

Council discussed call provisions and refinancing windows; advisers said they would evaluate call-date structure (likely a 9- or 10-year call) and other sale parameters in the coming days. Staff did not supply a single total principal amount in the hearing text; the ordinance as read authorised issuance within specified parameters and delegated final pricing decisions to the city's finance team and underwriting syndicate.

Council voted to approve the ordinance on a recorded vote. The staff team said if pricing proceeds as planned the city could close on the sale in May and receive proceeds thereafter, but all timing remained contingent on bond market conditions and staff decisions under delegated authority.

Separately, council approved a consent agenda that included a set of resolutions (2025-268 through 2025-281) without discussion.

The council meeting record shows extensive back-and-forth between council members and the finance team about market volatility, historical rates, and the effect of tariffs on investor demand; staff emphasized flexibility and the protective value of Waco's strong credit ratings in navigating market swings.