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NorthlakeTown Council approves $22.3 million bond package to fund water projects, roads and public works building
Summary
The NorthlakeTown Council adopted an ordinance authorizing issuance of certificates of obligation that will provide roughly $22.3 million to finance water infrastructure, a Public Works building and K Lane road reconstruction; advisers said the bonds sold competitively at a 3.94% true interest cost.
The NorthlakeTown Council on May 28 voted to adopt an ordinance authorizing the issuance of certificates of obligation that will raise roughly $22.3 million to finance multiple utility and capital projects, the council announced.
Finance staff and the town's advisers told the council the bonds were sold through a competitive sale and the town expects to receive about $22,300,000 in proceeds on delivery scheduled for June 25. "We received six different bids with Raymond James coming in at a TIC of 3.94%," financial adviser Quinte Nguyen said. Nguyen added the bonds were structured with a 20‑year repayment term and that S&P and Fitch both affirmed the town’s double‑A rating.
John, the staff member presenting the financing plan, said the package will cover several water projects, the Public Works building and the K Lane reconstruction. He noted most of the bonds will be repaid from non‑property‑tax sources such as water impact fees and utility subscription fees; only the road project and the portion of the Public Works building that houses the streets department are expected to rely on property taxes.
Council discussion emphasized timing and market conditions for borrowing. "One day in the market, one might not be able to receive as many bids, and today we've received six," Nguyen said, urging the council to accept the rate. A second adviser told the council: "Get in, get out, get quick and go with the rate that you got," citing market volatility.
A motion to adopt the ordinance was made and seconded; the chair announced the motion carried unanimously. The ordinance authorizes staff to proceed with closing and delivery on the dates presented by advisers.
What happens next: advisers said funds are scheduled for delivery on June 25, and staff indicated they will move forward with bid awards and construction scheduling once proceeds are received.
