Murphy financial adviser outlines debt capacity, May 2028 bond-election scenarios

Jason Hughes, senior managing director at Hilltop Securities and the city's financial adviser, told the Murphy mayor and council that preliminary analysis shows the city could support a May 2028 general obligation bond election under several tax-rate scenarios and that staff had included a proposed $6,500,000 certificates of obligation (CO) sale in the near-term budget analysis.

"So this is really meant, obviously, as a work session for you," Hughes said, framing the presentation as informational while he walked through types of municipal debt, outstanding obligations and assumptions used in capacity modeling. He noted, "20 year debt right now is probably around the 4.25%." Hughes also identified the city's current I&S (interest and sinking) tax rate at about 9.13' (nine-point-one-three cents).

Why it matters: Council and staff are evaluating financing options for projects that include street work (including McMillan Road) and utility needs. The presentation set out the mechanics and legal constraints of common Texas municipal debt tools — general obligation (G.O.) bonds, certificates of obligation, tax notes and water/sewer revenue bonds — and how changes at the state legislature…