Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Council approves publication of notice to potentially issue $7M certificates of obligation for water and wastewater projects
Summary
Council authorized publication of a statutory notice of intent to issue about $7 million in certificates of obligation for water and wastewater capital projects (a third planned issuance); staff emphasized the resolution only authorizes publication and does not obligate issuance. Projected timetable: rating call in July, bids in August and anticipated closing in September.
Fair Oaks Ranch — Council on June 4 approved a resolution authorizing publication of the city’s notice of intent to issue roughly $7 million in certificates of obligation to continue funding water and wastewater capital-improvement projects.
Summer Fleming, director of finance, told the council that the proposed issuance is the third planned certificates of obligation in a multi‑issuance financing plan to support utility CIP projects, including elevated storage tank work, waterline projects (GBR and Deets Elorn) and wastewater treatment plant expansion work. Fleming stressed the resolution only permits statutory publication of the city’s intent to issue debt and does not commit the city to sell bonds.
Staff said market assumptions used for planning included sample interest-rate assumptions (a working assumption cited in staff material was 4.0% for the current issuance) and projected impacts to the utility debt-service fees. Fleming presented planning estimates and reiterated that the projected increases are planning tools and that annual rate recalculation occurs during the budget process. If council moves forward with the issuance, staff expects a rating call in July, publication of notice of sale, bids around Aug. 20 and closing in September.
Council voted to approve publication of the notice. Staff and the city’s financial adviser will return with any additional procedural items should council choose to proceed with issuing debt later this fiscal year.
Speakers quoted: Summer Fleming, director of finance.
What’s next: If council decides to proceed with issuance staff will run a rating call, publish a notice of sale, accept bids and bring an issuance authorization at a later meeting.
