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Denison council directs publication of notice to issue up to $5.085 million for water-system improvements
Summary
The Denison City Council unanimously directed publication of notice of intent to issue up to $5,085,000 in combination tax and revenue certificates of obligation to support water-system improvements tied to Texas Water Development Board loan/grant programs; the project is aimed at mitigating water loss from aging infrastructure.
Denison City Council members voted unanimously Oct. 20 to direct publication of notice of intent to issue combination tax and revenue certificates of obligation not to exceed $5,085,000 to finance water-system improvements.
Ms. Aussabaugh, presenting the item, said the financing works with Texas Water Development Board loan‑assistance programs and that the effort aims to mitigate significant water loss the city attributes to aging infrastructure. She told the council bond counsel shortened the posted resolution by removing references to current outstanding general debt obligations that were not required to appear in the public notice.
The presenter gave a timeline for the process: notice of intent will be published later in the week and in the newspaper on Oct. 25 and Nov. 1; the ordinance to authorize issuance is scheduled for Dec. 15; and closing and funding were described as occurring in early January (the presenter corrected an earlier mention of the 6th to the 20th when asked). She also said the program allows deferred principal payments in the early years and a 30‑year term to ease near‑term budget pressure.
During questions, a council member asked about the interest rate and whether the program yields a more favorable rate; Ms. Aussabaugh said it does and explained the structure typically allows lower effective costs than preliminary estimates.
A motion to adopt the resolution directing publication was made by Councilman Massey and seconded by Councilman Thorne. The presiding official called for the vote; the council answered 'aye' and the motion carried unanimously.
Next steps in the record are the publication of the notice, the Dec. 15 ordinance consideration, and the planned closing early in January. Council members and staff emphasized the project’s purpose as reducing water loss; details on final grant totals and final interest figures will be set as the issuance and Texas Water Development Board approvals proceed.
