The overview
On Nov. 5, Cibolo voters approved around $26.1 million in bond propositions to be used for a new public safety facility and a new animal services facility.
To begin planning for these facility projects, Victor Quiroga, managing director at Specialized Public Finance, Inc., developed a financing plan to issue the voter-authorized bonds and the council authorized Certificates of Obligation, according to the Dec. 10 agenda.
Quiroga said the bonds will go out for competitive bids to receive the lowest possible interest rate for the repayment of the bonds.
“Whoever provides us the interest rate bid on these financings on Feb. 11 will be the winner of the bonds,” he said.
The General Obligation Bonds will be issued in two or more tranches, meaning payments will be split.
A total of $9 million will be allocated for the animal shelter, at an estimated tax rate impact of around $0.01, and $17.1 million for the public safety facility, with an estimated tax rate impact of around $0.02.
What it means
This plan is anticipated to have an estimated tax rate increase of $0.37 cents in fiscal year 2026. The actual impact on the tax rate will be determined by City Council next year.
The bonds will have a 20-year term with a fixed interest rate, and the competitive bids for the bonds are planned to be opened on Feb. 11.
Council will consider awarding the bonds to the lowest rate bidders at the regularly-called meeting scheduled for the same day, Quiroga said.
If all goes as planned, the transaction will close on March 12, and payments will commence in FY 2025-26.
