Lubbock council authorizes publication of notices for multi-series bond sales, staff projects $1.8 million gross interest savings

Lubbock’s City Council voted unanimously Jan. 13 to authorize publication and posting of notices of intent to issue multiple bond series, including certificates of obligation, general obligation (GO) bonds tied to prior authorizations and water/wastewater revenue bonds, and to refinance callable debt. The vote clears the way for staff to take the financings to market in mid to late March, officials said.

Chief Financial Officer Jimenez told the council the authorization is for several new‑money projects carried in the city’s adopted capital program and includes a $36.4 million West Lubbock water‑system expansion and a $12.5 million Certificates of Obligation project for Upland Avenue (82nd–98th Street). He said the measure authorizes publication so the sales can proceed when council later approves parameters.

Matt Bowles of RBC Capital Group briefed the council on municipal market conditions and preliminary cost estimates. Bowles presented preliminary all‑in true interest costs of about 4.22% for the CO series, 3.81% for GO refunding/new‑money portions and about 4.04% for the water/wastewater lien. He said the city’s plan would refinance portions of callable bonds on a maturity‑by‑maturity basis and projected, if market conditions hold, roughly $1,800,000 in gross interest savings over the life of the refunded obligations and a present‑value savings of just over $1,500,000.

When asked whether the savings were net of refunding costs, Bowles answered: “Great question. These are net of all costs.” Bond counsel Jerry Kyle and staff said the next formal steps include a March 10 parameters resolution authorizing issuance and then pricing shortly afterward, depending on market conditions.

The council approved the publication resolution by voice vote and will consider the parameters resolution and final sale at a later meeting.