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Hutto sells certificates and G.O. bonds at rates below earlier plan of finance
Summary
Competitive sales produced favorable results: certificate of obligation issuance for utility projects and general obligation bonds for a justice center design priced lower than the plan of finance, reducing expected total principal and interest costs; staff recommended approving the ordinances and proceeding to closing in February.
Jim Sabonis of Hilltop Securities briefed council on the results of competitive bidding for the city’s debt issues. He said market demand produced multiple competitive bids, premiums and interest rates that were materially lower than the earlier plan of finance.
"We're about 75 basis points cheaper than that," Sabonis said comparing the final all‑in rates to the plan of finance, and he summarized that certificates of obligation (approximately $70 million par) and general obligation bonds ($4.715 million par) were sold with premiums that reduced the city’s borrowing needs and overall principal/interest when compared with earlier estimates. Council approved the authorizing ordinances for the COs and the GOs (motions passed 7–0) and staff targeted a closing around Feb. 18.
