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Council accepts low bid for certificates to fund fire truck, proposes 0.513613 tax rate and schedules hearings
Summary
Council accepted the low bid from BOK Financial Securities for certificates of obligation (true interest cost ~3.64%) to fund up to $2 million for a fire truck and ambulance; it also proposed a tax rate of 0.513613 per $100 (an effective 13.41% increase), scheduled public hearings and set adoption dates.
The Sweetwater City Council accepted the low bid in a competitive sale of combination tax and revenue certificates of obligation and proposed a new tax rate during its Aug. 12 meeting.
Andrew Friedman of Samco Capital Markets, the city's financial adviser, told the council eight bids were received and the winning purchaser was BOK Financial Securities at a true interest cost of roughly 3.64 percent. The certificates will fund up to $2,000,000 in costs to acquire and equip a fire truck and an ambulance; Friedman said the EMS portion will be amortized over five years to match the useful life of that asset.
The council voted to accept the sale and authorized the issuance; Friedman said legal documents will be prepared for later signatures.
On taxes, staff proposed a rate of 0.513613 per $100 of valuation. The presenter said the rate "exceeds the no new tax revenue rate but is lower than the voter approval rate" and described it as effectively a 13.41% increase in the tax rate. The council voted to propose that rate, schedule a public hearing for Sept. 9, 2025, and set adoption for Sept. 16, 2025. During the record-style confirmation the presiding official and named council members voted in favor; the proposal carried.
Krista (city staff) answered council questions about structuring the debt and confirmed staff will finalize the debt structure and documentation.
The council also scheduled a public hearing on the proposed FY 2025-26 budget for Sept. 16, 2025.
