Kennedale officials outline $5 million bond plan to fund road projects and a ladder truck

Kennedale city officials and their financial adviser presented a plan May 19 to issue $5 million in certificates of obligation to fund local road projects and a ladder truck for the fire department.

Jack Mcccliny of Samco Capital Markets, the city’s financial adviser for the proposal, described a 20‑year financing structure with first payments beginning in 2027. The presentation showed the financing could be structured to hold the city’s current interest/rate targets in the near term, with flexibility to shift principal and use other funds if values change. Mcccliny said staff was seeking a nonbinding “green light” to engage bond counsel and proceed with preparing documents; no formal sale or vote to issue debt occurred at the meeting.

Officials said the current plan would allocate roughly $3 million to road work—cited projects included Little School Road design/build and the realignment of Sublet and Kennedale Parkway—and roughly $2 million to purchase a ladder truck for the fire department. Council members asked about the growth and value assumptions used in the analysis (a 3% annual growth assumption in early years was discussed), the EDC transfer of previously budgeted debt service, and the fund balance available to service debt. The presentation referenced an INS fund balance amount (stated in the presentation) and noted staff would post a notice of intent for public review if council approves the June 17 resolution.

Mcccliny outlined a tentative calendar: if the council approves a notice of intent on June 17, the city would publish statutory notices, receive a rating report and return on Aug. 18 with final interest rates and a formal request to sell the bonds; funds could be deposited by mid‑September if the sale proceeds.

No binding action was taken May 19; the council was asked to consider a notice of intent at the June 17 meeting.