Ennis advances $40M certificates of obligation; advisor recommends awarding sale at 3.72%

The Ennis City Commission on Aug. 6 moved forward with authorizing the issuance of $40,000,000 in certificates of obligation to support general capital and utility projects.

Staff explained the plan to split the issuance roughly $20 million for general capital projects and $20 million for utility capital. Mark McClaney of Samco Capital Markets, the city's financial advisor, summarized the sale process, noted the city's affirmed AA‑minus rating from Standard & Poor's, and recommended awarding the bonds to the winning bidder at a 3.72% interest rate. “So really got a huge group of underwriters,” McClaney said, adding that the best bid was Robert W. Baird at 3.72%.

Commissioners pressed staff on why the current issuance exceeded the amounts in the city's Capital Investment Plan; staff and the advisor said prior issuances and programming changes explain the difference and that debt service is structured to decline in future years, providing flexibility for future projects or emergency borrowing. McClaney estimated the interest‑rate environment reduced projected interest costs by about $3.2 million over the life of the bonds compared with earlier assumptions.

The commission considered an ordinance form of certificate that contained blanks for maturities; bond counsel explained the form is a template and that the mayor does not sign the form page of the ordinance (a separate initial certificate will be signed by the city secretary).

Why it matters: the issuance provides funding for a multi‑year capital program including water‑system work and other infrastructure projects. The lower interest result improves lifetime cost projections relative to recent estimates.

Next steps: staff and bond counsel will finalize ordinance language and complete sale documentation for execution.