College Station City Leaders Take Steps Towards Funding Infrastructure Projects and Refinancing Debt
College Station, Texas
City leaders in College Station are scrutinizing the possibility of issuing $43.3 million in certificates of obligation. This financial maneuver would aid in funding infrastructure projects and refinancing city debt without requiring direct approval from voters.
The Breakdown of Project Funding
The funds procured from these certificates are projected to be allocated to a variety of essential city ventures. A total of $12.5 million is targeted for facility enhancements, $7.7 million for park improvements, $5.5 million for street and sidewalk projects, and $1.1 million for the development of fiber optic infrastructure. In addition, $16.5 million would be earmarked for utility projects which encompasses electric, water, and wastewater systems.
The Texas Bond Review Board Role
In 2022, the Texas Bond Review Board (BRB) ranked College Station eleventh among the top twenty issuers of certificates of obligation debt, placing it just behind the City of Austin. The BRB is responsible for overseeing both state and local government debt issuance within Texas, thus ensuring prudent debt financing for infrastructure needs.
The Board was established in 1987 and consists of the Governor, Lieutenant Governor, Speaker of the House, and Comptroller. The BRB reviews and approves most state debt issues exceeding $250,000 or with terms longer than five years. Its main objective is to maintain high credit ratings and minimize associated costs.
A Necessary Step for Progress
Jeff Kersten, Assistant City Manager, advocates for the move, considering it a crucial part of how the city and local governments fund essential infrastructure. “This is one of the important steps in how we pay for the essential infrastructure that we have in this community. Whether that is our utility projects, our electric system, our water infrastructure, or our wastewater infrastructure,” Kersten explained.
Economic Benefits of Debt Refinancing
Jeff Kersten, furthermore, underscored the economic efficacy of refinancing older debts. By doing so, the city could potentially realize significant savings. “When we have the opportunity to refinance and refund a portion of our existing debt to save the taxpayers and the ratepayers money, we definitely want to take that opportunity,” he added.
The College Station City Council is planning to convene at City Hall on the evening of the vote, coming Thursday at 6 p.m.
As city leaders mull over this financial decision, they carry the hopes of not just meeting the city’s current needs but also securing a more developed and economically sound future for College Station and its residents.
