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Northlake Council unanimously approves $15.455 million certificates of obligation for water, sewer and road projects
Summary
The Town of Northlake voted 7–0 to authorize $15,455,000 in certificates of obligation to fund water, sewer and road projects; advisers said a competitive sale produced a ~4.19% true interest cost and the bond premium will cover a $645,000 funding gap to reach the $16.1M project total.
The Northlake Town Council unanimously approved an ordinance on March 13 authorizing the issuance and sale of $15,455,000 in certificates of obligation to fund a package of water, sewer and road projects. Council members voted 7–0 to move the measure forward after staff and the town’s financial adviser briefed the body.
John Thompson, who led the project briefing, said the council previously approved projects totaling $16.1 million and the CO principal amount reflects the competitive sale; the town expects a premium on the bonds to cover issuance costs and the gap between the $15.455 million principal and the $16.1 million project total. “This is just a list of the projects that that certificate of obligation is going to be covering,” Thompson said in his presentation.
Marty Hsu of Hilltop Securities, the town’s financial adviser, described the market results and credit picture. “Your COs were sold through a competitive sale…Your winning proposal with the lowest proposed true interest cost came in from Fidelity Capital Markets with a proposed true interest cost of 4.19%,” Hsu told the council, adding that the town’s AA credit rating limits borrowing costs and that the market had fewer bidders than usual during a volatile period.
Council members asked for context on how the rate compared with recent issuances for similar entities; Hsu said the result was in line with recent tax‑exempt rates for 20‑year amortizations and that the rating reports behind the agenda materials reaffirmed the town’s strong credit profile.
The ordinance authorizing the sale passed unanimously. Staff said funds are expected to be received in April and will be applied to the identified collection of infrastructure projects previously adopted in the budget.
Votes at a glance: the ordinance authorizing the CO issuance passed 7–0. The council’s meeting minutes list the competitive bid results and supporting rating reports as part of the record.
