Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Rio Grande City approves notice to pursue up to $6.5 million in certificates of obligation
Summary
The Rio Grande City Commission voted 4–0 June 30 to publish notice of intent to issue certificates of obligation to fund roughly $6.5 million in projects (water/sewer, parks, trash services, and EDC-backed items). City advisers said the plan is structured to avoid a tax-rate increase by using enterprise and EDC funds where possible.
The Rio Grande City Commission voted unanimously June 30 to publish notice of intent to issue certificates of obligation that staff and advisers estimate could fund about $6.5 million in local improvement projects.
Bobby Gology, the city’s financial adviser, told commissioners the proposed issuance would finance a mix of projects — including water and sewer work, park improvements, fire-hydrant repairs, the rodeo arena and trash-service upgrades — and that enterprise funds (water/sewer) and the Economic Development Corporation would cover roughly 70% of the package. Gology said the plan is structured so it “should not” require an increase in the tax rate: “I don’t believe we would have an increase on on the INS side at all,” he said during the presentation.
Why it matters: The issuance would let the city address deferred maintenance and facility needs without immediately raising property taxes. Gology outlined an assumed interest-rate scenario (about 4.21%), a 20‑year amortization example and a public‑notice schedule: the city will publish the notice, observe the 45‑day comment period required by state law, complete rating‑agency calls and then return to the commission to set final pricing.
Details and safeguards: Gology presented an allocation table showing the water/sewer enterprise bearing roughly 45% of the projects, the EDC about 25%, and the remainder on the general fund side; staff emphasized those allocations will be refined once final valuations and the market slot are known. Commissioners asked whether recent property‑tax exemptions for businesses had been factored into projections; Gology said staff has accounted for exemption impacts and would update numbers when certified valuations arrive at the end of July.
Procedure and next steps: By approving the resolution, the commission authorized staff to run the required public notices and proceed with rating‑agency outreach. Staff said the city expects to return to the commission after the statutory notice period with final numbers for formal sale and pricing.
The commission voted 4–0 to approve the notice (recorded yes votes from the Mayor, Commissioner Ben DeLeon, Commissioner Adel Vera and Commissioner Olivaris).
