Council Authorizes Issuance of $13.1 Million in Certificates of Obligation

Council authorized the issuance of $13.1 million in Certificates of Obligation at the December 11 Council meeting to fund the construction of a new building for U.S. Customs and Border Patrol and Airport Administrative offices and various water and wastewater capital improvement projects. Because of Addison's outstanding bond ratings and market conditions, the certificates sold at a premium with an interest rate of 3.30 percent. As a result of the premium, the City was able to reduce the amount of debt issued, but still generate the amount of money needed for the projects, which totals $13.5 million.

Seven million dollars will be used to construct a new U.S. Customs and Border Protection Federal Inspection Station combined with the Airport Administration offices at Addison Airport. These bonds will be self-supporting and the obligation will be funded through airport operating revenues.

The remaining $6.5 million will be used for water and wastewater capital projects to improve or maintain the existing infrastructure. These bonds will also be self-supporting and funded through utility rates. The financial impacts were included in the Fiscal Year (FY) 2019 budget and are reflected in the FY2019 utility rates. 

You can watch the Council discussion on issuing Certificates of Obligation here.