Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Bonds topic
No spam. Unsubscribe anytime.
Denison council approves $20.3 million certificates of obligation sale
Summary
The Denison City Council approved an ordinance authorizing issuance of $20.3 million in combination tax and surplus revenue certificates of obligation (Series 2026B) after a competitive sale that drew 11 bidders and resulted in a reported true interest cost of about 3.93%.
The Denison City Council unanimously approved an ordinance on March 16 authorizing the issuance of combination tax and surplus revenue certificates of obligation, Series 2026B, to raise approximately $20,300,000 for project funds.
City staff described the bonds as sold competitively earlier in the day. A Hilltop financial advisor who reviewed the sale reported there were 11 bidders and a lowest true interest cost of roughly 3.93 percent. “You had 11 different bidders trying to get your bonds. Mezero Financial came in with the lowest proposed true interest cost of 3.93%,” the advisor said, summarizing the bid results.
The advisor explained the bonds are being sized over a 20-year period with fixed interest rates and placed the sale’s rate below a municipal benchmark published by the Bond Buyer. The presentation also noted the city’s credit ratings were affirmed in the process; the advisor reported an S&P Global rating of A– and a Fitch rating described in the transcript as DA.
City staff and the financial advisor said the bonds will be submitted to the attorney general for approval and the city expects to receive sale proceeds on April 15. The council moved to adopt the ordinance authorizing the issuance, the motion was seconded and carried unanimously.
The ordinance and presentation were discussed in open session; the council then recessed into an executive session later in the agenda but reported no action related to the executive session items upon reconvening.
