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Finance advisers present $48.6 million capital financing plan; council asks for project list and returns item in March
Summary
Hilltop Securities outlined a proposed $48.55 million bond package (combining tax and revenue certificates of obligation) to fund streets, aquatic center, water/sewer, drainage and Nance Farm; council raised questions about line‑item project details and a math typo; staff promised a detailed project list ahead of a March 4 action item.
City finance advisers on Feb. 18 presented a preliminary plan to finance the city of DeSoto’s 2025 capital improvement program with a single, combined tax and revenue certificate of obligation (CO), but the City Council took no action and asked for more detailed project documentation before any vote.
Andre Ayala of Hilltop Securities briefed the council on a financing plan sized at about $48.55 million to fund a package of capital work: streets and traffic signals, a high‑quality aquatic and recreation center, water and sewer system projects ($10 million), drainage projects ($2.4 million) and Nance Farm construction ($1 million). Ayala said the recommendation is to issue one combined CO to achieve issuance economies of scale and to assume a conservative 20‑year fixed rate of roughly 4.17% for budgeting purposes.
Financial assumptions presented included use of property tax and available utility revenues as security, modest assumed city growth of 3% for tax base projections, and planned transfers from drainage and hotel/motel occupancy tax funds for selected projects. Ayala said the plan is sized to fit within the city’s current 18.10‑cent debt‑service tax rate and that DeSoto maintains high investment‑grade ratings from rating agencies.
Council members asked for a clearer breakdown of the specific projects and dollar amounts in the packet; Councilmember Diana Marks noted a discrepancy between subtotals shown in slides and the total, which Hilltop staff acknowledged as a typo and corrected on the record. City staff said the more detailed project list and line‑item allocations would be provided to council by Friday ahead of a planned March 4 agenda item to consider a notice of intent and, later in May, a bond issuance should council choose to proceed.
Timeline presented: March — notice of intent to issue CO and publication of required notice; early May — sale/issuance; May close to make funds available for the 2025 CIP. Ayala and staff emphasized that issuing the combined CO is a financing choice to accelerate multiple capital projects rather than a new policy decision, and that council retains discretion on the final package and timing.
Council requested staff provide the full list of CIP projects, the current status of previously authorized bond proceeds (including prior COs for the aquatic center), and clarifying documentation so council members can evaluate scope, timing and tax‑rate impacts before any formal action.
