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Bryan council authorizes parameters for city and rural electric-system bond sales to fund transmission projects
Summary
Council unanimously approved ordinances delegating parameters for the sale of City of Bryan electric-system revenue bonds totaling up to $45 million (city system pricing target $35M construction fund) and rural electric-system bonds up to $23.5M (target $18M construction fund). Staff said pricing is targeted for Nov. 18 and council will receive an informational update in December.
The Bryan City Council voted unanimously to adopt ordinances authorizing parameters for the sale of revenue bonds for the city—s electric system (BTU) and the rural electric system.
City staff and a presenter identified in the record as Steven Adams of Specialized Public Finance described the city-system sale as intended to fund approximately $35,000,000 in new transmission and substation projects, with an estimated reserve fund of about $2,600,000 and an all-in need of roughly $38,000,000. The ordinance sets a principal-amount cap so that the par amount would not exceed $45,000,000 to allow flexibility at pricing. Staff said delegated pricing is planned for Nov. 18 and that council will receive a non-voting informational update on Dec. 9 after pricing.
A separate rural-electric bond issue was presented to fund about $18,000,000 in projects; the transcript records an estimated maximum principal not to exceed $23,500,000 and an estimated bond insurance/premium figure noted in the presentation. The presenter said both systems show strong debt-service coverage and favorable credit metrics.
Council members asked about the split between cash and debt financing and about call provisions; staff said transmission projects are recoverable through transmission cost-of-service revenues and that the proposed call date (2034) aligns with existing debt calls.
Council adopted both ordinances by unanimous vote. The council record shows delegated-sales parameters were authorized so pricing officers (typically the CFO) can finalize structure and interest terms within the council-approved limits. Staff noted the transactions must receive required approvals (including the attorney general—s office) before closing.
Next steps: delegated pricing in November; informational report to council in December with final interest-rate results.
