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Council approves second GO bond tranche to fund STAR Center project
Summary
The council authorized a second general‑obligation bond tranche intended to complete funding for the STAR Center project; staff and the town’s financial adviser reported oversubscribed bonds, a TIC of about 5.46% for the taxable GO series, and a double‑A credit affirmation.
The Northlake Town Council approved an ordinance authorizing the issuance and sale of the town’s general obligation taxable bonds series 2025 to fund the STAR Center project, authorizing a principal amount stated in the ordinance as $22,280,000.
Staff reviewed the project financing: voters approved a $45,000,000 authorization for the STAR Center on Nov. 7, 2023; a 2024 issuance produced $22,710,000 (with $22,500,000 going to the project fund and $210,000 used for issuance costs), and staff briefed council that the second tranche being considered would provide roughly the remainder of the project fund (staff referred to a second tranche near $22,290,000 that, together with the first tranche, would produce about $44,790,000 available for the project). Financial advisor Marty Hsu said the taxable GO bonds sold through a negotiated sale and were oversubscribed, reporting a final true interest cost of 5.46% and that both S&P and Fitch affirmed a double‑A level credit rating for the town.
Councilor Holmes moved to approve the ordinance; the motion passed unanimously. The ordinance authorizes the town to issue the second tranche and anticipates delivery of funds on or about March 27, subject to closing.
