College Station City Council Moves Forward with $43.3 Million Certificates of Obligation
In a significant development for public works in College Station, Texas, the city council has signaled its intention to issue Certificates of Obligation worth $43.3 million. This declaration was made during a city council session held on Thursday evening and denotes the taxpayer funds earmarked for various civic projects.
It is essential to clarify that this does not signal the formal approval of either the budget or the specific projects. Instead, it serves as a formal announcement of the council’s intention to move forward. The council retains the right to deny any project at any subsequent date. Moreover, while the specific projects remain undefined at this stage, they are currently classified into broad categories, often referred to as ‘buckets’.
Breaking Down the Buckets
The distribution of the financial resources among the buckets shows that $12.5 million is allocated for facility upgrades. These renovations are planned for both existing and upcoming facilities. The citywide fiber network dedicated to city facilities is also due for an injection of $1 million.
Furthermore, the fund allocation extends to other municipal necessities with an earmarked budget of $5.5 million for sidewalks and paths, and $7.7 million for parks and recreation. The total proposed expenditure from the governmental funds bucket rises to $26.8 million.
Additionally, Certificates of Obligation are also set to be utilized for utilities funds. These funds are bundled together to leverage preferable interest rates with a combined value of $26.8 million.
Looking Forward: The Next Steps
Before the council’s voting process, further specificity was requested and the development of ballfields was hinted at. The council confirmed that further details on the issue would be provided in July.
The next key date is July 25, when a vote on the intent can be cast. In the meantime, the council will submit to rating agencies in June. Once that is accomplished, the interest rates for the proposed obligations will be ascertained. The anticipated date for the Closing and Delivery of funds has been set for August 27.
On a side note, the city has also proposed the utilization of $13.2 million from General Obligation bonds, which were approved by voters in 2022 under Proposition D. The purpose of these bonds was for funding various parks’ projects, which now include the development of a pickleball court, refurbishment of the Bee Creek and Central tennis courts, and renovations for the Bachman Building and Central Park’s Operation Shop.
