Weslaco approves $30 million certificates of obligation after favorable market bid

The Weslaco City Commission on July 31 approved Ordinance 2025-16, authorizing the issuance of $30,000,000 in certificates of obligation to fund drainage, infrastructure, parks, streets and wastewater projects.

Anne Berger Entrekin of Hilltop Securities, the city’s financial advisor for the transaction, told the commission the morning bond sale produced strong institutional order flow and recommended acceptance of a bid that yielded a project fund deposit of $31,248,838. "We recommend that the city approve the bid from Estrada," Entrekin said, adding the sale captured a few extra basis points for the city and lowered yields compared with earlier projections.

Entrekin summarized the rating-agency review, noting Standard & Poor’s cited Weslaco’s healthy reserve position and stable outlook. She said the rating report identified no immediate financial actions required to earn an upgrade and credited city staff for preparing extensive written responses that shortened the rating-call time.

Mayor (speaker 1) welcomed the result as "a victory for the city," saying the proceeds will be applied to drainage, infrastructure, parks, streets and wastewater work. Commissioners and staff praised the finance team and underwriters for their role in the sale.

A motion to approve Ordinance 2025-16 was made and seconded; the commission approved the item on a voice vote with no recorded opposition.

The ordinance and the bond-sale presentation were taken up and disposed of at the special meeting; staff and underwriters noted the market conditions that produced the recommended yield and the increased project fund deposit. The commission moved on to subsequent agenda items following the vote.