Burleson reports favorable bond sale results; ratings affirmed, debt service estimated to fall by about $1.5 million

Burleson officials on Aug. 18 reviewed results of the city’s August 12 bond sales and said market conditions produced better-than-anticipated interest rates.

Deputy City Manager Harlan Jefferson and financial adviser Marty Hsu of Hilltop Securities told the council that the city sold two series: certificates of obligation structured to net about $45,260,000 to the project fund and general obligation bonds structured to net about $8,500,000. Hsu said the sale attracted multiple bids: seven bids on the COs (lowest true interest cost 4.32% from Janney Montgomery Scott) and four bids on the GO bonds (winning proposal with a true interest cost of about 4.37% from Brownstone Investment Group).

Ratings were affirmed by Moody’s and Standard & Poor’s at double‑A levels, which staff said keeps Burleson’s borrowing costs lower. Hsu told the council that the actual interest rates came in below the parameters adopted earlier and that the difference from the preliminary estimate translates to roughly $1.5 million less in debt service over the life of the bonds.

The presentation included a standard sources‑and‑uses breakdown and a comparison to the parameter ordinance the council approved in July; staff noted that all parameter conditions were met. Council received the report and had no substantive objections to the sale results.

Next steps: no further council action was required on the closed sale report; staff will proceed with standard post‑issuance administrative steps.