Commission authorizes up to $150M certificates of obligation to fund public‑safety building, roads and parks

At the Sept. 2 meeting, the commission considered and approved a delegation ordinance to authorize the sale of up to $150,000,000 in combination tax and revenue certificates of obligation (series 2025A) to fund capital projects including a public‑safety facility, roadwork, parks and airport improvements.

Alan Gard framed the request as a response to potential state legislation that could limit the annual amount of debt cities can issue. Gard said delaying could jeopardize the public‑safety facility and other projects that staff and consultants plan to fund through a front‑loaded issuance. Dave Gordon of Estrada Hinojosa, the city’s financial advisor, presented two pro‑forma scenarios: a $150M issuance and a smaller $50M issuance. The larger scenario assumed a sale at approximately 4.5% and included conservative taxable‑value growth assumptions.

Gordon said the $150M project fund amount would likely result in a lower par amount after anticipated premium and that the plan includes internal contributions and project‑fund interest earnings to partially offset debt‑service pressure. His pro‑forma showed a potential tax‑rate effect of just under 0.25 (24.79¢ debt service component) next year with a hypothetical small uptick in subsequent years under conservative assumptions; Gordon described the model as conservative and expected the final impact to be lower.

Commissioners discussed timing, project scope and alternatives. Gard said the public‑safety facility total cost is currently estimated between $70M and $80M, including furniture and technology, and that contingency is included. A motion to authorize staff and advisers to proceed with sale of up to $150M, effective immediately, passed by voice vote after discussion. Staff indicated a proposed sale date and closing schedule if approved (sale Sept. 23, close Oct. 21 under the timeline presented).