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Weatherford approves certificates of obligation sale for public-safety funding; bond sale explained
Summary
The council adopted ordinance 2021-20 authorizing certificates of obligation for public-safety financing; staff said the plan requires no property tax rate increase and a Hilltop Securities representative described an auction sale that produced $18,220,000 in bond proceeds and a reported true interest cost of 1.769%.
The Weatherford City Council unanimously adopted an ordinance authorizing the issuance and sale of tax and utility-system limited pledge certificates of obligation to help fund the city's public-safety building.
Brad Burnett, assistant city manager, summarized the funding strategy and emphasized the council's prior direction: "The plan does not require an increase in the property tax rate," he said, adding that the issuance is structured to preserve the city's debt capacity and not jeopardize the bond rating. Burnett also reported a true interest cost for the issuance of 1.769%.
Boyd London of Hilltop Securities described the auction-style sale used for the bonds and the multiple bids received. London stated, "We sold $18,220,000 in bond proceeds," and explained how the auction allows bidders to view and revise competing bids, producing a winning bidder and a final true interest cost. He described how premium payments affect yield calculations and why some institutional buyers adjust bids to maintain a valuation above par.
After staff presentations and brief questions, Mayor Pro Tem moved to approve ordinance 2021-20 and the council voted 5–0 to adopt it.
City staff said the financing plan had been part of a previously discussed funding strategy that included reserves and allocations to avoid raising the property tax rate; details from the sale were provided in the bond presentation from Hilltop Securities.
