Waco staff outline plan to publish notice of intent for up to $110 million in COs

City finance staff and the city’s financial advisor presented a plan for the FY26 capital program and asked council to approve publishing a notice of intent to issue certificates of obligation (COs) with a maximum principal amount of $110 million.

Colin Booth, the city’s managing director of finance, summarized the capital projects to be funded, which include Better Streets Waco programs, bridge and fire‑services projects, airport runway rehabilitation, a Cameron Park Zoo exhibit expansion and water/wastewater system work. Booth said the total capital cost for general‑government projects in the presentation was about $51.9 million, with $41.78 million proposed to be funded with debt and other cash and intergovernmental sources covering additional items.

Esther Young, the city’s financial advisor, presented projected financing results and said staff is aiming for a 20‑year amortization and an estimated net interest cost near 3.96% under current market assumptions. Young told council the notice is an authorization to publish intent only — “You can approve an amount lower than that, but this is for the notice of intent to issue certificates of obligation,” — and the actual debt authorization and final bond parameters would come later, with rating meetings in January and a possible bond pricing in February.

Council members asked for peer comparisons and additional detail about outstanding debt and fiscal metrics before final approval; staff said they will return in January with parameters for the sale and will provide rating‑agency materials. The transcript does not record a final council vote on the notice during the provided segments.

What’s next: staff plans to publish notice(s) (Nov. 8 and 15), meet with rating agencies in January, return with bond parameters, and—if approved—seek to price the sale in February and close in early March.