Denton City PUB recommends publishing notices of intent for $82M and $243M in certificates of obligation

The Public Utilities Board of Denton City voted on April 27 to recommend publication of notices of intent to issue certificates of obligation totaling $325 million across two separate items: $82 million for general government and solid waste projects and $243 million for water, wastewater and electric projects.

Matt Hamilton, the city’s chief financial officer, told the board the publication is a required step under state law before selling certificates of obligation and that the notice sets a ceiling rather than a firm debt issuance amount. “What we are asking is a recommendation for the publication of the notice,” Hamilton said. He explained the published ceiling often is lower than earlier reimbursement-ordinance figures because some projects are delayed or staff identifies alternative funding.

Hamilton reviewed line-item differences between earlier reimbursement ordinances and the notices of intent: the solid‑waste ceiling in the notice is $17.4 million (previously $18.2 million in the reimbursement ordinance); the water notice lists $44.9 million (previously $55.6 million); wastewater decreased from $141 million to $113 million in the notice; electric remained at $58 million. He also said the $243 million notice includes a placeholder for potential capitalized interest for water and wastewater and about $2.66 million for issuance costs and pricing flexibility.

Hamilton outlined next steps: council consideration of the notices on May 5, a PUB review of bond ordinances on June 22, council authorization in mid‑July and a preliminary sale and close in late July–August if schedules hold.

Board members asked clarifying questions about vehicle replacements and transformer costs; staff said some transformer spending increased because deliveries arrived sooner and vendors delivered more quickly than originally anticipated. After discussion, members moved and seconded separate motions to proceed with each notice and approved both by voice vote.

The board did not adopt final bond ordinances at the April 27 meeting; staff will return with the bond‑authorization ordinances and more refined dollar amounts in June and July.