Certificates of obligation are used by city governments to fund projects that maintain city infrastructure, according to city documents.
These funds will be used for the reconstruction of Highland Shores Boulevard and Highland Village Road, with Denton County providing a 50% funding match for both projects, according to city documents.
The specifics
Amber Chien, assistant vice president at Hilltop Securities, gave a presentation about the certificates of obligation to members of the Highland Village City Council at the Sept. 9 meeting.
The Highland Shores Boulevard project—which will cost the city $5.5 million—covers the section from Briarhill Drive to Twin Coves Drive, while the Highland Village Road project—which will cost the city about $1.6 million—spans from Brazos Boulevard to the Kansas City Southern Railroad.
The city will repay the funds over a 20-year period, Chien said.
The city received bids from four companies and Chien said she recommended that city officials choose Raymond James & Associates Inc., which offered the lowest interest rate of just over 4%.
“This is a fixed rate that will stay fixed for the next 20 years,” she said.
With the principal and interest, Highland Village will spend a total of $11.7 million on the two projects.
What’s next
Council members will finalize the sale of these bond funds at the next council meeting Sept. 25.
