The city of Hutto is planning to issues roughly $77 million in bonds for upcoming utility projects and for the design of a new justice center.

Overview

More than $72.5 million of the bond funding will help support capital improvement projects for the city’s utility system. These projects include:

• Southeast Loop Wastewater Interceptor: $24.9 million
• Brushy Creek Interceptor Phase 4: $32.67 million
• Avery Lake Interceptor Phase 1: $8.94 million
• Avery lake Interceptor Phase 2: $6.03 million

Andre Ayala, financial adviser with HilltopSecurities, said in an Oct. 17 City Council meeting that the certificate of obligation bonds would be secured by the city’s property taxes and its revenue collected from utility services. However, he added that the debt would likely be repaid solely by the utility revenues. Hutto has been undergoing a series of water and wastewater infrastructure projects, including the South Wastewater Treatment Plant the city broke ground on last year.

Another $5 million in general obligation bonds would go to the design of Hutto’s new justice center. In July, Hutto Police Chief Jeffrey Yarbrough told council members that Hutto Police Department’s facility is in need of an upgrade.

Ayala said the average annual debt payment for the utility projects would come out to around $5.2 million, while the annual debt payments for the justice center design would be slightly over $400,000. These would be paid out over 25 years and 20 years, respectively.

The bonds stem from a 2018 election, when voters approved three propositions totaling $125 million.

What’s next

City Council is expected to vote on a notice of intent to issue the bonds at a November meeting. Should Council approve the notice, the city would look to execute the bond transaction in January.