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Mansfield approves multi‑series bond package and sets GMP for stadium construction
Summary
Council approved a package of bond actions following staff and underwriting presentations: combination tax and revenue COs, GO refunding/improvement bonds and MEDC sales‑tax bonds; staff also approved a guaranteed maximum price (GMP) of $88,275,000 for the stadium construction manager contract.
City finance staff and advisors briefed the Mansfield City Council on a multi‑series financing package Dec. 9 and the council approved the items that were presented. The package included combination tax and revenue certificates of obligation (COs) with a final par amount of $139,615,000, general obligation refunding and improvement bonds of approximately $12,960,000, and Mansfield Economic Development Corporation (MEDC) sales tax revenue bonds (a tax‑exempt series totaling roughly $56.4 million and a taxable series of about $22.6 million). Advisors reported strong investor demand and affirmed ratings (Moody’s Aa1; Fitch AA+), and staff said pricing came in better than projected.
Nick Boulos of Hilltop Securities summarized pricing: the CO sale produced approximately $15.7 million in premium and a true interest cost of ~3.715 percent. The GO refunding and improvement bonds produced interest‑rate savings; staff said refunding combined with a $5 million budgeted prepayment produced roughly $2.3 million in interest‑cost savings across transactions.
Council then considered project‑level authorizations tied to the financing. Staff confirmed that some projects (for example Julian Field Veterans Memorial) will be paid from cash rather than borrowed funds, and that projects funded through the bonds were discussed extensively during the budget process. Council approved the CO authorization and related GO/refunding matters on voice motions recorded as carried by the required majorities.
Separately, council approved a resolution amending the construction manager‑at‑risk contract with Moss Construction to include a guaranteed maximum price (GMP) of $88,275,000 for the multipurpose stadium. Staff said the GMP is supported by the bond sale proceeds, MEDC contributions and other sources contemplated by previously approved voter propositions and development agreements. Moss Construction representatives and staff answered council questions about timeline, phasing and the financing package before the vote. The stadium GMP resolution carried 6‑0.
