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Amarillo council approves $11.2 million certificates of obligation for street resurfacing
Summary
The council adopted Ordinance 8199 to issue roughly $11.2 million in certificates of obligation to fund recurring street resurfacing projects, citing a low bid interest rate of about 3.27% and an affirmed AAA rating; council approved the ordinance by voice vote.
The Amarillo City Council on June 10 adopted Ordinance 8199 to issue approximately $11.2 million in combination tax-and-revenue certificates of obligation to fund street resurfacing projects over roughly a 10‑year term.
Paul Jason of Specialized Public Finance told the council the city received six bids and the low bid came in at about 3.27% for a slightly less‑than‑10‑year fixed rate issue. Jason said the competitive outcome and an affirmed AAA rating mean the city expects to save about $400,000 compared with earlier estimates.
Laura (city staff) said the legal amount of the certificates is $11.2 million and that the proceeds will fund about $11.86 million in identified resurfacing projects, including milling and overlay work, microsurfacing and other preservations projects. The sale is scheduled to close on July 10, staff said.
Council members spoke in support of the plan as a way to create a recurring funding stream for streets rather than relying solely on one‑time cash. After a motion and second, the ordinance was adopted by voice vote (motion carried). The council did not amend the ordinance during the meeting.
What happens next: staff will proceed with the transaction as outlined by the bond team, and city debt counsel will complete closing steps in early July.
