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Council approves $3.555 million tax note to reimburse general fund for 820 Ferris purchase
Summary
The council authorized issuance of a short-term tax note of $3.555 million to reimburse the general fund for acquiring the former Comerica Bank building at 820 Ferris Ave and to fund renovations; staff said the note requires no tax-rate increase and carries a two-year term.
The Waxahachie City Council approved an ordinance authorizing the issuance and sale of the City of Waxahachie Tax Note Series 2026 totaling $3.555 million to reimburse earlier general fund expenditures for the city’s purchase of 820 Ferris Avenue (the former Comerica Bank building) and to fund acquisition-related improvements.
Finance Director Chad Telsey told the council the purchase contract closed in December at a purchase price of $2.75 million, initially funded from the general fund with the intention to issue a short-term tax note to replenish the general fund. Telsey said the tax note will have a two-year term, with payoff by August 2028, and that the issuance fits within the city’s debt-service capacity. He said the lowest bid produced a true interest cost of 3.45 percent and that issuing a tax note does not require an ad valorem tax rate increase.
Telsey explained that using the interest and sinking (debt service) fund instead of the general fund provides budget flexibility for ongoing operations in future years. He also noted the finance team and a financial advisor were present to answer technical questions.
A council member moved the ordinance and the motion carried. The city will complete issuance of the tax note as approved and proceed with planned renovation work funded in part by the issuance.
