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Cleburne council approves plan of finance for $45.85 million Certificates of Obligation to fund 2024–25 CIP
Summary
City financial advisors presented a plan to issue approximately $45.85 million in Certificates of Obligation to fund general and water/sewer capital projects for fiscal 2024–25; staff said the issuance is not expected to affect current ad valorem tax rates or water and sewer rates.
The Cleburne City Council on June 11 approved a plan of finance to move forward with a proposed Certificate of Obligation issuance totaling approximately $45,850,000 to fund the city’s 2024–25 general and water & sewer capital improvement program.
Jim Sabonis of Hilltop Securities, the city’s financial advisor, told council the city is in strong fiscal condition and outlined the proposed structure: "The plan to go forward is [to] issue one Certificate of Obligation totaling approximately 45,850,000," he said. Sabonis estimated an interest rate of roughly 4.37% on a 25‑year amortization and presented an illustrative total repayment of about $78.8 million allocated between general‑fund and utility‑fund obligations.
City staff said the financing is structured so there is no anticipated impact on the city’s ad valorem tax rate or on current water and sewer rates. Staff outlined the schedule if council approves: publish a notice of intent on June 25, conduct a competitive sale targeted for Sept. 10, present sale results to council that evening, and close in October pending Attorney General review of issuance documents.
Council voted unanimously to approve the plan-of‑finance steps to proceed. The formal vote to issue debt would occur later, after notice and the competitive sale, and is contingent on procedural approvals including the Texas Attorney General’s review.
Why it matters: The financing will enable a large capital program across general and utility projects while staff said they expect the city to maintain current tax and rate levels.
