The total amount of certificates of obligation available to be ordered for this purpose by the city is $37 million, but the city can ultimately spend less than that. These certificates will be repaid by the collection of ad valorem property taxes and surplus revenue of the city’s waterworks, drainage and sewer utilities.
Council will publish the notice in accordance with state law a minimum of 45 days ahead of its April 28 meeting that will include a public hearing regarding the certificates, according to Chief Financial Officer Susan Morgan.
Once approved by council, the bond can be issued for these projects, Morgan said. The timing of issuing these bonds soon versus waiting to issue the amounts in the future is based on low interest rates—if it looks like the current low interest rate market may rise, issuing the bonds now will lock in lower interest rates.
This is not the only method of funding for city projects, Morgan said. In 2021, over $1 million of road impact fees was used for debt service.
The list of transportation projects designated for these funds include arterial maintenance; Bagdad Road improvements; as well as work on North Chisholm Trail; CR 112; Creek Bend Boulevard; Eagle’s Nest; Gattis School Road Segments 2, 3, 5 and 6; Greenlawn Boulevard improvements; and the northeast downtown improvements.
