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Willow Park council authorizes staff to pursue debt funding for Squall Creek road project
Summary
After a Hilltop Securities briefing on options to fund roughly $9.9 million in streets and water projects, the council voted to authorize staff to move forward with debt financing to fund the Squall Creek road project, while accepting staff and consultants’ recommendation that the street portion could be supported without raising the tax rate under current assumptions.
Willow Park — The City Council voted Nov. 17 to authorize staff and Hilltop Securities to proceed with plans to fund the Squall Creek road project using certificates of obligation, after a detailed presentation on the city’s debt capacity and schedules.
Eric Maha of Hilltop Securities walked the council through preliminary financing assumptions, showing a $9.91 million package split into roughly $6.35 million for streets and $3.56 million for water projects and assuming 20‑year level payments and a 4.33% interest rate. Maha said those assumptions and the city’s projected tax base mean the street portion could be paid without raising the tax rate under the scenario presented.
“This is a preliminary look,” Maha told the council, and stressed that final interest rates and exact repayment schedules would be set only when the market is accessed in early 2026.
Mayor Teresa Palmer and council members pressed staff on timing, petition and voter‑approval differences between general‑obligation bonds and certificates of obligation (COs). Staff emphasized that COs do not require voter approval but are subject to a 45‑day petition period; general‑obligation bonds would go to the May ballot and, if rejected, would pause those projects for three years.
After public comment from nearby residents who urged prioritizing either the Bankhead extension or water‑system repairs, a council member moved to authorize staff and Hilltop Securities to move forward with the funding plan as presented; the motion was seconded and approved.
What passed: A motion authorizing staff and Hilltop Securities to advance the proposed debt issuance process for the Squall Creek road project and related water work. No roll‑call vote tally was recorded in the meeting transcript.
Why it matters: Staff said city reserves and recent sales‑tax performance give Willow Park flexibility to issue debt now without a tax‑rate increase under the model shown. If the council proceeds with COs, schedules discussed would let the city publish intent in December, set interest rates in late January and have funds available by late February 2026.
Next steps: Council and staff will refine project scopes and sizes, confirm the split of street vs. water funding, finalize the notice of intent, and return with formal authorizing resolutions and sale documents. Maha emphasized the assumptions are preliminary and contingent on market conditions when the city sells the debt.
Reported by: Jake (year‑end finance presenter) and Eric Maha (Hilltop Securities).
