Bryan council authorizes sale parameters for electric-system bonds to fund $35 million in projects

The City of Bryan voted unanimously to adopt an ordinance authorizing issuance of electric-system revenue bonds to provide approximately $35,000,000 in capital for BTU substation and transmission projects. Catherine Tapscott introduced the item and Steven Adams of Specialized Public Finance presented the sale parameters, timing and coverage metrics.

Adams described a delegated, parameter sale—meaning council would authorize a pricing officer to set interest rates, call dates and structure within the ordinance’s parameters at pricing. "So we plan on pricing these in November," Adams said, and he told council the pricing officer would report back to the council at an informational session on Dec. 9. Adams noted the presentation’s debt-service figures and said, "So we expect the city to maintain its good credit ratings and hopefully get bond insurance on these bonds." He also described a reserve fund estimate of approximately $2,600,000 and an estimated total near $38,000,000 depending on couponing, with a principal amount not to exceed $45,000,000 under the parameters approved.

Council members asked follow-up questions about cash versus debt funding, which projects are recoverable through transmission cost-of-service revenues, and call provisions (Adams said a 2034 call aligns with existing debt). The ordinance passed on a unanimous vote.