Nacogdoches council adopts ordinance authorizing $15M+ general obligation bonds

The Nacogdoches City Council unanimously adopted an ordinance authorizing the issuance and sale of City of Nacogdoches General Obligation Improvement Bonds, Series 2025, after hearing a report on the competitive bond sale and financing plan.

Interim Finance Director Todd Simineau and financial advisor Michael Martin of Hilltop Securities told the council the bonds were sold competitively, with Robert W. Baird submitting the winning bid and the sale producing a solid borrowing rate in the current market. Martin said rating agencies affirmed a double A-minus rating on the city's debt and outlined the planned uses of proceeds: projects for the airport, fire department, drainage, parks and streets (the total uses listed in the financing booklet equal a little more than $15,000,000).

Martin described the sources-and-uses breakdown, issuance costs and the projected debt-service schedule; he said the structure yields a true interest cost in the mid‑4 percent range and that some bonds will be callable in 2034. Simineau confirmed the sale meets legal and reporting requirements and that bond-related fees (bond counsel, rating reports, paying agent) are accounted for in the cost-of-issuance budget.

Council Speaker 10 made a motion to adopt the ordinance authorizing issuance and sale of the Series 2025 bonds and to approve all matters incident thereto; the motion received a second and passed unanimously.

The ordinance approval authorizes staff to proceed to closing and to deposit bond proceeds into city accounts for the listed capital projects. Council did not tie any bond proceeds to changes in project scope during the meeting; staff said line-item and close-out details will appear in future reports.

The council's action finalizes the financing step; closing details and the schedule for project implementation are expected to follow under staff direction.