Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bond Financing topic
No spam. Unsubscribe anytime.
Athens council approves $8M water and sewer bond package and related accounts
Summary
The City Council approved an ordinance authorizing issuance of Waterworks and Sewer System Revenue Bonds, Series 2026, to finance wastewater plant improvements, accepted bank-account setup for the bonds, and authorized a yield-reduction payment for the 2020A series; council votes on bond items were unanimous.
The Athens City Council on Jan. 12 approved an ordinance authorizing issuance of the City of Athens Waterworks and Sewer System Revenue Bonds, Series 2026, to finance wastewater plant improvements, and approved related treasury actions and a required yield-reduction payment tied to earlier bonds.
Marti Shew of Hilltop Securities told the council the financing would use the Texas Water Development Board and that the final true interest cost is roughly 2.5 percent; Hilltop estimated the financing would save about $1.6–$1.7 million compared with market alternatives on the approximately $8 million of financing presented. The debt was described as amortized over 20 years; the city cited a total repayment figure of $10,751,126.06 over the life of the loan.
Council approved the ordinance by roll-call vote, recorded as Aaron Smith (Aye), SyTanna Freeman (Aye), Katha Lawyer (Aye), Bill Priestley (Aye) and Bryan Barker (Aye).
On related treasury business, Finance Director Sarah Smith presented a resolution to establish two TexPool taxable accounts for the Series 2026 issuance — a restricted Debt Service Reserve Account and a Capital Project Account to track project expenditures — which the council approved. Earlier in the meeting, the council also authorized a required yield-reduction payment of $56,826.40 for the City’s Waterworks and Sewer System Revenue Bonds, Series 2020A, following calculations by Hilltop Securities Asset Management.
City Manager Elizabeth Borstad said the issuance will fund three projects identified in the ordinance: purchase of sludge-dewatering equipment; West Wastewater Treatment Plant electrical improvements and an administrative building; and a TPES permit amendment. The council approved the bond ordinance and related resolutions unanimously on Jan. 12.
