Socorro council approves up to $15 million in certificates of obligation for streets, parks and solid-waste system

The City of Socorro on April 16 approved an ordinance authorizing up to $15,000,000 in combination tax-and-revenue certificates of obligation to fund streets, sidewalks, park improvements and a new solid-waste disposal system.

The council opened a public hearing with no speakers and then heard a presentation from the city’s financial adviser, Robert Tijerina of Tijerina Financial Consulting, and bond counsel Angela Avila of McCall Parkerson & Horton. Tijerina said the bonds were priced the morning of April 16 and that proceeds would be wired to the city at closing on May 14. He described a financing structure with higher payments in the first five years to accelerate repayment of shorter-life projects and reported an overall fixed interest rate of 3.9% for a 20-year term.

“The first payment won’t be until next fiscal year,” Tijerina said, adding that the city’s preliminary calculations show principal-and-interest payments that front-load certain items to match useful life requirements.

Avila, the city’s bond counsel, said the updated ordinance includes the pricing information and reiterated that the document formalizes the contract between the city and certificate holders while noting the state and federal legal and disclosure requirements that apply to tax-exempt debt.

City staff and several council members framed the borrowing as a necessary step to address infrastructure needs that the operating budget cannot cover. A vote to adopt the ordinance followed the presentation and passed by voice vote.

The presentation identified estimated issuance costs of about $230,755 and named Piper Sandler and FHN Financial as the underwriters; BOKF was listed as paying agent and Standard & Poor’s affirmed the city’s rating. City officials said the detailed tax-rate impact will be clearer once certified property values are available in July.

The council adopted the ordinance that authorizes the Series 2026 certificates; staff will complete subsequent steps required by the attorney general and the bond documents prior to closing.