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Red Oak council approves $6.1 million certificates of obligation at 3.88%
Summary
The Red Oak City Council approved an ordinance authorizing $6.1 million in combination tax and revenue certificates of obligation to fund streets and utility projects. Hilltop Securities reported a low bid at 3.88%, which staff said will lower principal and interest by about $245,000 over the life of the debt.
The Red Oak City Council voted to authorize the issuance and sale of $6.1 million in combination tax and revenue certificates of obligation to finance street and utility projects.
Jorge Delgado of Hilltop Securities told the council the city received seven bids and that the low bid was "a low bidder at a 3.88% for a 20 year financing," a result he said the city was able to capture after a recent dip in market rates. Delgado said the lower rate would reduce the city’s principal-and-interest payments by roughly $245,000 over the life of the certificates compared with earlier budget assumptions.
The financing is part of a multi‑phase plan the council began earlier this year to fund the capital improvement program. Delgado said the award fits the parameters the council set in July and confirmed the city’s AA rating after a positive call with the rating agency.
The council opened a public hearing for the certificate issuance and — with no speakers from the public — adopted ordinance 24‑044 authorizing issuance. The motion and roll‑call recorded five affirmative votes.
Council and staff said the plan preserves flexibility for future capital needs and aligns with the city’s budgeted tax rate parameters. No changes to the project list were announced at the meeting.
