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Rowlett council directs publication of notice to issue up to $12 million in certificates of obligation
Summary
Council voted to publish a required notice of intent to issue certificates of obligation of up to $12,000,000 for priority projects including concrete panel replacement, street and alley reconstruction, and fire apparatus; the vote authorizes only the notice, not the debt issuance itself.
The Rowlett City Council authorized staff July 2 to publish a legally required notice of intent to issue certificates of obligation (COs) of up to $12,000,000 to fund council priorities including concrete panel replacement, asphalt road improvements, street and alley reconstruction, and fire apparatus.
Assistant City Manager Christophe Bauer told the council the notice is required by state law and must be published at least 45 days before the council would consider final authorization to issue the debt. He said the notice will be published July 5 and July 12, with pricing and a formal authorization to return to council in August.
Bauer characterized the COs as part of a broader financing plan that also includes voter-approved general obligation bonds and short-term tax notes for vehicles and equipment. He said total City debt is estimated at about $44 million pending appraisal updates and market pricing.
Councilmember Schoop moved to adopt the resolution directing publication of the notice; Councilmember Bowers seconded the motion. The council approved the publication resolution unanimously. Several council members emphasized that tonight’s action does not yet authorize issuance of the debt but simply begins the statutory notice process.
Key numbers and next steps: the city requested notice for up to $12,000,000 in COs, expects to return to council in August to consider actual authorization and pricing, and will close the financings if council approves at that later date.
What was said: "You're not authorizing that debt tonight," Bauer said, "You're simply directing us to issue the required notice of law." The motion passed unanimously.
