Citizen petition stalls Willow Park road certificates of obligation; council pauses CO issuance

A citizen petition asking for a public vote on certificates of obligation tied to road, drainage and waterline projects forced the Willow Park City Council to pause previously planned financing steps on Feb. 10.

What happened: Petitioners submitted signatures asking the city to hold an election on issuing up to $10.111 million in COs to fund street, drainage and water improvements (including Squall Creek Road). Bond counsel and underwriters had been scheduled to price the certificates the morning of the meeting, but attorneys said they could not proceed while a petition had been filed and its validity remained unresolved. Counsel advised that, absent a binding ruling on petition validity, the matter could not be placed on the May uniform election and likely would shift to a November ballot.

Public debate and costs: Residents and petition organizers said they objected to the CO process and asked for direct voter approval; some speakers argued the petition saved taxpayers from an unwanted debt. Other residents and council members warned that halting the COs has costs. City staff reported about $350,000 already expended on engineering and preliminary work for the road project and a $21,400 charge for a bond-rating call; bond-finance professionals noted that interest-rate movement between the postponed pricing and any future issuance could add several hundred thousand dollars in interest costs.

Council’s action: In light of the pending petition and legal questions about its timing and form, a councilmember moved to deny the CO issuance (an action that effectively resets the process). The motion was seconded and adopted; one councilmember recorded an opposition. Bond counsel said the practical result is that pricing and any voter schedule will be reassessed and that the city may need to re-run rating or underwriting steps when the matter is reintroduced.

Why it matters: The petition process gave neighborhood residents a legal mechanism to require direct voter input on debt issuance. For the city, the interruption means sunk costs and interest-rate risk if debt is reissued later; for residents, it means a direct ballot choice but also the chance the project will be delayed.

Next steps: Staff and legal counsel will verify the petition’s signatures and validity, and the council will decide whether to resubmit a CO plan for a later election date or to pursue other funding options. Council discussed whether to conduct additional outreach to signers to understand their concerns.