Southlake City Council approves issuance of $10.8M in bonds

Infrastructure improvements will move forward after the Southlake City Council approved issuing certificates of obligation bonds in the maximum amount of $11.2 million.

Jorge Delgado, HilltopSecurities Senior Vice President, said the plan for financing occurred in May. He said during the Aug. 6 meeting the city will issue $10.8 million in bonds with a 15-year amortization.

The conditions

Delgado said the city’s "AAA" Standard & Poor rating helped them make a quick confirmation. The city had five bids to chose from to issue the CO bonds, and the council voted to go with Fidelity Capital Markets, which offered a 3.216% true interest rate. Delgado said the city and his company planned on a 3.79% rate in May.

The cost will be $13.9 million after principal and interest, city documents show.

What's happening?

The city has targeted $41.6 million in projects. Of that total, $24.1 million will be paid with cash, Southlake Chief Financial Officer Sharon Jackson said in a February meeting. The remainder will come from the CO bonds.

The money will be used for four different projects, according to Delgado.


• Waterline improvements
• Pump station improvements

The money to pay for the work will be paid back by water and sewer system net revenues, Delgado said.