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Groves council approves sale of $26 million certificates of obligation to fund city projects
Summary
On March 9, 2026, the Groves City Council approved Ordinance 2026-05 authorizing the issuance and sale of certificates of obligation series 2026. Staff reported a Standard & Poor’s AA‑minus rating, a $26 million deposit to the project fund and an all‑in interest cost near 4.04 percent.
The Groves City Council on March 9 approved Ordinance 2026‑05 authorizing the issuance and sale of certificates of obligation series 2026 to fund planned city projects. City staff told the council the sale produced approximately $26,000,000 to deposit into the project fund and that Standard & Poor’s had assigned an AA‑minus rating to the city’s debt for this offering.
City presenter Mr. Roof said the certificates’ stated principal was $24,500,000 (as described in the documents provided to council) and that the sale’s reported all‑in interest cost was about 4.04 percent, with a taxable/federal equivalent figure cited separately. He told council the principal and premium from investors together produced the full $26 million available for projects and that the heaviest years for debt service would run roughly 2028–2046.
Bond counsel Lance Fox told council that, if the vote passed, the mayor would need to sign the bond purchase agreement and the city would submit closing documents to the Texas Attorney General’s office for its required review before funds are deposited; staff projected receipt of the money on or about April 7, 2026. Mr. Roof said the transaction produced lower annual debt service than originally budgeted — he estimated roughly $1.965 million in average annual debt service in the main years compared with an earlier estimate near $2.14 million, a difference he described as roughly $180,000 less per year.
Council members asked for clarification on timing and signatures. After discussion, council voted to adopt the ordinance. Bond counsel said he would remain after the meeting to collect required signatures.
The action: Ordinance 2026‑05 authorizing issuance and sale of the certificates of obligation was approved by council. The council packet contained the preliminary official statement and bond‑sale documents; staff said the Texas Attorney General’s review is the next procedural step before funds are deposited.
