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Ennis moves ahead with notice of intent for up to $40M in certificates of obligation; utility portion still under review
Summary
The commission authorized staff June 4 to pursue a notice of intent to issue up to $40 million in certificates of obligation — $20 million for general capital projects and $20 million for utility capital projects — while staff completes a utility rate study to determine how much the utility fund can support.
The Ennis City Commission authorized staff on June 4 to post a notice of intent to issue up to $40 million in certificates of obligation (COs), a step that allows the city to continue planning and due diligence while final pricing and project lists are finalized.
City Manager Marty Nelson told commissioners the $40 million figure is a “not to exceed” amount divided into $20 million for general capital projects and $20 million for utility capital projects, including a possible water-plant expansion. “This is a $40,000,000 issue with 20 for general capital projects, 20 for utility capital projects,” Nelson said.
Nelson said reassigning budget priorities to right-size public-works operations consumed about $2 million of anticipated utility revenue during the budgeting process, and staff and the city’s financial adviser are still determining whether the utility fund can support the full $20 million allocation for utilities. A utility-fee study and a rate analysis are underway; Nelson told the commission he expected more definitive data within a few weeks.
Mayor Cameron Rayburn urged prioritizing critical infrastructure if the commission must choose. “I would prefer that we use the certificates of obligation funds… to focus those funds towards our critical infrastructure in our city,” Rayburn said, citing streets and the public-works facility.
Staff described the notice of intent as an authorization to proceed with the bond process and compile a menu of candidate projects — the governing body will later select which projects to fund. Items discussed as potential general-capital candidates include a family water park, a new fire engine, public-works facility upgrades and park and street improvements.
The commission approved the notice of intent by voice vote. Final bond sizing, project selection and pricing will return to the commission for approval after staff completes the utility analysis and obtains market pricing.
