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Council approves $61.7M bond ordinance after competitive sale with 3.96% TIC
Summary
Council adopted an ordinance authorizing $61,700,000 in combination tax and revenue certificates of obligation after Specialized Public Finance reported 11 bids and a winning true interest cost of 3.96%. Proceeds were allocated to streets, fire engines, Midtown Park and animal services.
The Bryan City Council voted unanimously to adopt an ordinance authorizing the issuance of $61,700,000 in combination tax and revenue certificates of obligation, series 2026, following a presentation on the sale results.
Steven Adams of Specialized Public Finance told the council the sale attracted strong market interest: “We received 11 bids… the winning bid with a true interest cost of 3.96 percent.” Adams said the city’s AA+ credit rating helped generate competition and produced a rate notably lower than the 4.5% previously shown in April. Staff presented a debt-service schedule that matches amortization to asset life, with higher payments through 2032 for some items and longer amortization for streets and park improvements.
Council members asked clarifying questions about the rating and why more firms bid the sale; Adams explained the rating reflects demographics, management and financial factors. The ordinance authorizes levy of ad valorem tax and a limited pledge of surplus revenues to secure the certificates and approves related documents; council approved the motion by unanimous vote. Staff and the financial advisor noted the sale structure lowered par amounts while preserving planned project funding.
