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Amarillo council approves series of bond measures to fund water lines, fleet and parks projects
Summary
The City Council approved multiple financing actions Dec. 9 including a water and sewer revenue bond, combination tax-and-revenue certificates for fleet and PID park amenities, and a reimbursement resolution to finance new fire apparatus, with staff emphasizing favorable market demand and a AAA credit profile.
The Amarillo City Council on Dec. 9 voted to move forward with a package of debt issuances aimed at financing water main extensions, fleet replacements and park amenities while preserving the city’s credit strength.
Council adopted an ordinance to authorize issuance of combination tax-and-revenue certificates of obligation (Series 2026) that staff said will fund fleet replacements and PID park purchases. Financial advisors reported robust market interest and recommended awarding the bonds after receiving a competitive set of bids that produced a rate near 3.12% on one sale. The motion passed on a unanimous, five‑zero voice vote.
Katrina Owens, the city’s finance staff member leading the presentations, said the certificates will be split by project type: fleet replacements financed from fleet revenues and park‑related PID assessments covering the PID share of debt. Stephen Adams of Specialized Public Finance told council the city’s strong debt‑service coverage and active management have helped Amarillo maintain a AAA rating, which attracts more bidders and lowers borrowing costs.
Separately, council approved a resolution to publish notice of intent to issue up to $30,310,000 in certificates of obligation for street resurfacing and related reconstruction projects, a step staff described as the required public‑notice phase ahead of a Feb. 10 bid date.
Council also approved a reimbursement resolution that allows the city to make interim payments to a fire‑apparatus manufacturer and later reimburse those payments from tax‑exempt public property financing (PBFCO) proceeds. Financial staff said that approach should save substantial interest costs compared with vendor lease options and enable current pricing to be locked in while the city completes the financing process.
Advisors told council the sales are expected to be competitively bid in February with closing later in March and that the attorney‑general review and other state approvals remain part of the timetable. Mayor Stanley and council members praised staff for the coordinated approach and for protecting the city’s fiscal capacity as Amarillo plans for growth and infrastructure needs.
The council’s action authorizes staff to proceed with the published steps; the bids and final award documents will come back to the council for final sale approvals as required by state and local procedures.
