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Crockett council authorizes publication of notice of intent for certificates of obligation to fund fire and police vehicles
Summary
Council approved publishing a notice of intent to issue certificates of obligation to finance a Class A fire pumper, ladder truck refurbishment and four police pursuit vehicles; financial adviser said the likely issuance could raise the tax rate by roughly two cents under conservative assumptions.
Council approved a resolution authorizing publication of a notice of intent to issue certificates of obligation to finance public-safety vehicles and associated equipment. Staff framed the item as a notification step required before soliciting bids; Ben Rosenberg (financial adviser) explained certificates of obligation are a financing instrument that typically will be repaid from property taxes and presented a tax-rate analysis that estimated a conservative maximum impact of about two cents.
Rosenberg also explained the city can depreciate assets on different schedules so shorter-lived items like police cars can be paid off sooner while longer-lived fire apparatus can be amortized over 15–30 years. Council discussed monitoring the market for interest-rate movement and decided to hold pricing and final approval at the council’s regular September meeting, when the city will solicit market bids and choose the lowest accepted interest rate.
The council moved, seconded and approved publication of notice of intent to proceed with the debt issuance process; staff will return with bid results and a final debt-issuance ordinance if market conditions and council approval align.
