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Rowlett council unanimously approves parameter ordinance to issue up to $20 million in certificates of obligation for municipal complex
Summary
The council adopted a parameter ordinance delegating final pricing authority to issue up to $20,000,000 in certificates of obligation as part of a $76,000,000 municipal complex funding plan, with a maximum true interest cost of 5.5% and a final maturity date of Feb. 15, 2055; pricing was anticipated for Feb. 25, 2025.
The Rowlett City Council voted unanimously to adopt a parameter ordinance authorizing the issuance of certificates of obligation (COs) to help fund a municipal complex project that the city presented as part of a $76,000,000 debt funding plan. Finance Director Wendy Badgett told the council the city plans to issue "up to 20,000,000 in certificates of obligation as an overall 76,000,000 debt funding plan to support the municipal complex project," which includes a new city hall, administrative offices, police and fire headquarters, jail courts, an animal shelter and park amenities.
Badgett detailed the proposed parameters: a maximum true interest cost of 5.5 percent, a maximum principal amount of $20,000,000 and a final maturity date of 02/15/2055. The ordinance would delegate final pricing authority to the city manager and/or the finance director for a limited period; Badgett noted the delegated authority would expire after approximately 90 days (the transcript references March 30, 2025) and that pricing was anticipated around 02/25/2025 with closing and delivery to follow in late March.
During the motion period, a councilmember (recorded in the transcript as Schupp/Schoop) moved to adopt the ordinance and Councilmember Bowers seconded. Mayor Pro Tem explained his vote, saying he had been vocal in the past opposing certificates of obligation but had reconsidered after council discussions and one‑on‑one meetings with city leadership: "And I can admit that there was a time when my belief, about C.O.s was misguided... My support for the issuance of these bonds is grounded in intentionality and purpose," the Mayor Pro Tem said.
The motion carried unanimously by those members present. The ordinance delegates authority to finalize pricing within the set parameters; staff said the anticipated pricing and closing dates would follow the timetable Badgett outlined. No subsequent amendments or legal citations beyond the parameter ordinance text were recorded in the meeting segments provided.
Next steps: with council approval of the parameter ordinance, staff will proceed with pricing under the delegated authority within the ordinance parameters.
