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Cibolo council approves plan to pursue $4.5 million in certificates of obligation for capital projects
Summary
Council voted to proceed with a financing plan to issue up to $4.5 million in certificates of obligation for the FY26 capital-improvement program, with competitive bids planned for July and proceeds targeted for August; staff noted a projected INS tax-rate change from 0.1845 to 0.1878.
Council approved staff's request on April 28 to proceed with a financing plan that would issue up to $4.5 million in certificates of obligation to fund capital-improvement projects identified in the FY26 five-year CIP.
Victor Koga of Specialized Public Finance presented the plan and timeline: publish a notice of intent (the council approved the related resolution the same night), open competitive bids on July 14, return to council with results, and expect proceeds to be delivered into the project account by Aug. 12. Koga said the debt would be structured over a 20-year period with semiannual interest payments and annual principal payments beginning Feb. 1, 2027.
Koga noted the city's strong credit rating (S&P double-A+), which should help secure favorable rates, and ran a preliminary tax-rate impact model showing a small projected INS tax-rate increase from 0.1845 to 0.1878 if the issuance and assumptions are realized. Staff emphasized that appraisal values, interest rates and final structure will determine the actual tax-rate impact and that final decisions will follow the July bidding process.
Council voted to approve the financing plan to continue the process and approved the resolution to publish the statutory notice of intent that starts the 45-day clock for issuing the certificates.
Next steps: staff and the financial adviser will follow the required publication schedule, present bid results in July, and return to council for final approval of the actual issuance documents.
