Kennedale council approves notice of intent to seek up to $5 million in certificates of obligation after extended debate

Kennedale City Council on June 16 voted to authorize publication of a notice of intention to issue certificates of obligation in an amount not to exceed $5,000,000, after a long debate about timing, projects and public notice requirements.

Jack Maclaney of Samco Capital Markets presented the financing framework, telling the council the city’s preliminary valuations and debt rolloffs provided capacity for up to $5 million of debt “with absolutely no impact to your city's current tax rate,” and explaining that a notice of intent must be published for at least 46 consecutive days before a sale.

Several council members said they were comfortable with a broadly written notice that preserves flexibility to allocate proceeds to vehicles, equipment, roads, water and sewer projects, while others pressed for more project-level certainty before signaling intent to market the debt. Concerns included incomplete design work on Little School Road, the potential market and credit effects of withdrawing after initiating a sale process, and the timing tied to certified appraisal values and the city’s tax-rate-setting schedule.

Maclaney and staff emphasized the notice is a legal step that does not commit the council to issue the full amount and said final approval and bonding decisions would return to the council with interest rates and a formal sale in August. One council member summarized the item as a recognition of the city’s current financial capacity rather than an immediate borrowing decision.

After discussion, the council approved the resolution to publish the notice of intention; the clerk announced the motion passed 5–0. Members directed staff to continue project-level deliberations and to present final structuring, interest rates and tax-rate impacts before any sale is finalized.