Council authorizes $X million certificates of obligation to fund water and wastewater projects after high credit ratings

The Weatherford City Council authorized issuance and sale of tax and utility system limited‑pledge revenue certificates of obligation (Series 2025) to fund critical water and wastewater capital projects, following presentation of rated sale results that yielded favorable pricing.

The certificates will fund the Water Purification Plant expansion, a new elevated storage tank at West Park Pump Station, Lift Station 17 expansion and the Town Creek main trunk line — projects the city described as necessary to maintain Texas Commission on Environmental Quality (TCEQ) compliance as the community grows.

Don Brooks, the city’s chief financial officer, said the bonds were priced the morning of the meeting and that proceeds should be available in approximately 30 days. Brooks said the utility rate structure was designed to accommodate the resulting debt service and that staff had prepared for the issuance through multiple public meetings over the past year.

Brooks noted the city obtained strong credit ratings in the process: Standard & Poor’s assigned a AA rating and Moody’s assigned Aa2 (both high‑grade investment ratings). He said Standard & Poor’s also upgraded the city’s existing utility system rating to a AA‑minus from A+. Brooks credited disciplined financial management and the city’s recovery from storm impacts for the upgraded ratings.

Marty Hsu of Hilltop Securities, the city’s financial adviser, summarized the competitive sale. He told council the city received 10 bids and the winning true interest cost was 4.27%, a result well below a municipal index referenced in the sale materials. Hsu said the bonds were structured with equal annual payments over a 20‑year term and recommended council adopt the ordinance to accept the bid and lock the interest rate.

Council member Heidi Wilder moved to adopt the ordinance authorizing issuance (Ordinance O‑2025‑27); Council member Matt Tiscus seconded. The council approved the ordinance by recorded touch‑screen vote. Staff said funds will be disbursed in about 30 days and that project engineering and procurement will continue in parallel with the closing process.