Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Finance topic
No spam. Unsubscribe anytime.
Council authorizes $49 million certificates for Northeast Treatment Plant upgrades with subsidized state financing
Summary
Council authorized issuance of $49 million in certificates of obligation to finance rehabilitation and expansion of the Northeast Treatment Plant, with staff saying the Drinking Water State Revolving Fund will provide a subsidized rate (effective ~2.624%), saving the city an estimated ~$380,000 annually versus market financing.
Marjorie Knight, director of finance, presented an ordinance to authorize issuance of $49,000,000 in certificates of obligation to fund water and sewer system improvements and expansion of the Northeast Treatment Plant. George Williford of Hilltop Securities described a successful application to the Texas Water Development Board Drinking Water State Revolving Fund and an effective blended rate of about 2.624% for 20‑year debt. Williford said the structure includes a small 0% component tied to an asset management portion and that annual debt service would average about $3.11 million.
Staff and the bond advisor said this financing approach yields roughly a full percentage point lower rate versus market alternatives and estimated annual interest savings on the order of several hundred thousand dollars; closing and the initial draw were projected for late April. Council voted to approve the ordinance authorizing issuance.
