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Council approves $26.07M certificates of obligation after competitive bids

City Council of Montgomery, Texas · February 11, 2026

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Summary

Montgomery accepted competitive bids and approved issuance of certificates of obligation; the top bid from BFA Securities yielded a true interest cost of about 3.6493 percent and proceeds of roughly $27.445M for project funding.

Montgomery, Texas — The City Council on Feb. 10 approved an ordinance authorizing the issuance of tax and revenue certificates of obligation, Series 2026, after the city’s financial advisor presented competitive bids and recommended acceptance of the best offer.

James Gilley of US Capital Advisors told the council the sale produced eight bids, with the winning bid from BFA Securities at a true interest cost of 3.649317 percent. The final par amount shown in the bid package was $26,070,000; after applying premium the city expects approximately $27,445,000 in project proceeds at closing. Gilley said underwriters from six states competed for the sale and credited the city’s relatively strong fiscal profile, noting a double‑A rating in the packet materials.

Councilors praised staff for conservative budgeting and for preserving a low tax rate while advancing capital projects. One council member noted the city had not increased property taxes for this issuance and that staff had worked to keep reserves healthy.

The council approved the bond ordinance and related documents by motion (item 15), with closing anticipated in March. Staff will return any final closing documents as required by state law and the ordinance.