Navasota council authorizes publication to begin up to $10 million certificates of obligation process

The Navasota City Council voted to begin the process of issuing certificates of obligation with a not-to-exceed total of $10,000,000, city staff told the council.

Hemminger, the city manager, explained the purpose and scale of the proposal, saying, “the resolution on the agenda tonight establishes a not to exceed $10,000,000, in total.” He told the council staff expects to allocate about $6,000,000 for streets in the general fund and roughly $2,000,000, or 25% of the total, for utilities work tied to street projects. He added the estimate would result in a current annual payment “just under 550,000,” and noted the city had already budgeted about $500,000 for street repairs.

City staff said the measure starts a public-notice and waiting period; the finance team expects to offer the bonds competitively and is targeting a competitive bond sale on the morning of Sept. 28, with the transaction closing about 30 days later. The city manager cautioned that issuing COs does not commit the city to immediately spend funds and that exact street lists would be finalized during the design process. “This will not touch every street in Navasota,” Hemminger said, underscoring that the work would cover a portion of the city’s longer-term street needs.

A council member moved to approve the resolution directing publication and posting of notice of intent to issue the certificates; a second was recorded and the mayor called the vote. The mayor announced the motion carried.

Next steps, according to staff, include finalizing the list of streets and completing offering documents during the roughly 60‑day window before a sale could occur.