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Crockett council approves $1.7 million certificates of obligation to fund ladder-truck refurbishment, engine replacement and police vehicles
Summary
Council approved an ordinance authorizing $1.7 million in certificates of obligation to refurbish the ladder truck, replace a 30-year-old fire engine and buy four police vehicles; staff said the debt would likely add up to 2 cents to the tax rate and cost the owner of a $100,000 home about $24 annually.
The City Council of Crockett voted on Aug. 19 to approve an ordinance authorizing the issuance and sale of $1,700,000 in tax and revenue certificates of obligation to fund public-safety equipment, including refurbishment of the city’s ladder truck, replacement of a 30-year-old fire engine and purchase of four police vehicles.
Ben Rosenberg, the city’s financial advisor with US Capital, told the council that four bids arrived that morning and that Robert Baird was the winning underwriter with a stated total interest cost (TIC) of about 3.57 (adjusted TIC shown as 3.52265 in the offering materials). Rosenberg said the issuance required a 45-day notice for this financing instrument and outlined the timetable: legal paperwork, attorney-general approval, comptroller certification and closing by month end.
On repayment, Rosenberg and staff explained the city expects to repay the debt from property-tax-supported debt service (general-fund obligations). The plan spreads borrowing over 15 years to minimize the tax-rate impact; staff presented a tax-rate analysis estimating the debt portion could increase the tax rate as much as 2 cents. Rosenberg illustrated homeowner impact in the offering: roughly $12 per year for a $50,000 home and $24 per year for a $100,000 home under the presented assumptions.
Council members asked whether water and sewer revenues could be used instead; Rosenberg said those revenues could be considered for water/sewer projects, but the recommended approach was property-tax-funded because these are general-fund expenditures. A council member moved to approve the ordinance/orders authorizing the certificates of obligation; the motion was seconded and carried by voice vote.
What happens next: officials will complete paperwork, seek attorney-general and comptroller approvals and close the transaction to receive funds; staff indicated proceeds will be deposited into the city’s project fund for the listed equipment work.
