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Centerton ratifies $16.59 million water and sewer bond, citing market timing
Summary
Council approved Ordinance 2026-28 to ratify a $16.59 million water and sewer revenue bond and adopted its emergency clause so the city could lock in the bond pricing. City advisers warned delay would require repricing and could raise borrowing costs.
The Centerton City Council on Aug. 11 adopted Ordinance 2026-28, ratifying the sale of $16,590,000 in water and sewer revenue bonds and invoking an emergency clause to lock final financing terms.
City bond advisers told council the financing had already been priced and that failing to adopt the ratifying ordinance immediately could force the city back into the market. “If the ordinance is not adopted tonight with the emergency clause, it does not go into effect,” said Bob Wright, who explained the pricing implications. “So it does not allow us to lock in and send out confirmations on the pricing, we would have a failed pricing.” He said repricing later could raise the city’s costs and expose it to market risk.
Council discussed alternatives including longer-term borrowing or using sales-tax pledges, but advisers said those routes can change rates, terms and materials requirements. Staff noted the pricing came in under the parameters previously set by the council and that investors submitted orders exceeding the sale’s capacity.
After public discussion, council voted by roll call to adopt the ordinance and the emergency clause. The council’s roll-call votes recorded an approving majority and the ordinance was declared effective on passage.
The ratifying ordinance pledges water and sewer revenues to secure the bonds; it confirms final sale terms and authorizes closing documents necessary to settle in mid-September. Officials said settlement timing will determine when bond funds become available for construction and related improvements.
