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Bonham authorizes up to $1.35 million in contractual obligations to fund equipment purchases
Summary
The Council approved an ordinance authorizing issuance of Texas Public Property Finance Contractual Obligations, Series 2026, to fund vehicle and equipment purchases (total equipment cost cited as $1,197,190.14) and shifted debt service to the I&S portion of the tax rate; the authorization was capped at $1,350,000.
The Bonham City Council on Feb. 9 approved an ordinance authorizing the issuance and sale of City of Bonham, Texas Public Property Finance Contractual Obligations, Series 2026, to finance the acquisition of vehicles and equipment for multiple departments.
City staff said the total equipment cost for the purchases is $1,197,190.14 and that the request was bid out to four vendors. The ordinance authorizes issuance in a principal amount not to exceed $1,350,000 and levies an annual ad valorem tax for payment of the obligation. Staff told the council financing through contractual obligations shifts debt service to the interest-and-sinking (I&S) portion of the city’s tax rate, reducing pressure on maintenance and operations funds used for day-to-day costs.
The motion to approve the ordinance passed unanimously, 4-0. City staff said funding was expected to be finalized around March 10.
