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Gainesville council approves up to $10 million certificates of obligation after S&P upgrade
Summary
The City Council approved an ordinance to issue up to $10 million in Combination Tax and Revenue Certificates of Obligation to fund street and utility improvements after a presentation noting an S&P Global upgrade to the City's credit rating.
The Gainesville City Council voted unanimously Nov. 4 to authorize the issuance and sale of up to $10,000,000 in Combination Tax and Revenue Certificates of Obligation, Series 2025, to fund street and utility system improvements.
Quinn Moser of Hilltop Securities summarized the debt issuance options for the council and said the city had secured a more favorable interest rate following an S&P Global upgrade from AA‑ to AA. Moser attributed the upgrade to “economic growth, consistently balanced operating results, increasing reserves, and strong management supported by comprehensive policies,” the presentation noted.
Councilmember Jeff Johnson moved to suspend the charter for the ordinance vote and Councilmember Linda Lewis seconded; the ordinance carried 7–0. The city will levy an annual ad valorem tax to pay the certificates, appoint bond counsel and a paying agent/registrar, and adopt an official statement as part of the issuance process.
The action allows the city to proceed with financing for identified street and utility projects; the ordinance text called for other standard provisions including a severability clause and an effective date. The council did not identify a precise project list or construction schedule during the meeting.
Next steps include executing the paying agent/registrar agreement and completing the official statement required for sale of the certificates.
