Public Utilities Board recommends ordinances authorizing up to $611.3 million in bonds and certificates
June 22, 2026 | Denton City, Denton County, Texas
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
The Public Utilities Board on Monday recommended that Denton City Council adopt ordinances authorizing the issuance of up to $316,338,000 in general obligation refunding and improvement bonds and up to $295,000,000 in certificates of obligation, both series 2026.
Matt Hamilton, chief financial officer, presented the combined proposal and the departmental uses for the certificates of obligation. He said the CO allocations include $17,400,000 for solid waste, $44,900,000 for water, $113,900,000 for wastewater and $58,400,000 for electric. Hamilton said the total CO request reflects an updated project list and excludes a previously considered $23,000,000 capitalized interest allowance.
Hamilton told the board that an analysis showed capitalizing interest would cost about $25,000,000 over the life of the bonds, so staff recommends structuring the amortization and issuance schedule to ease near‑term rate pressure without incurring the long‑term cost of capitalized interest. "So we are not proposing to move forward with the capitalized interest," Hamilton said.
The presentation also outlined an opportunity to refund outstanding debt issued in 2016–2017 at lower market rates (Hamilton cited current rates around 3.65% versus earlier rates near 5%). Staff projected aggregate, lifetime savings across departments of roughly $102,100,000 and noted that refunding a set of DME revenue bonds would produce about $13,700,000 in lifetime savings—approximately $700,000 a year over the remaining 20‑year term, Hamilton said.
Board members asked for clarification about the "general government" CO line; Hamilton said it covers facilities, technology services and predominantly vehicles used by the general fund and streets functions. He also clarified that certain streets and drainage projects are tied to the city's 2023 bond election and are not shown in the CO list because those items will be part of a separate GO sale.
The board discussed next steps and schedule: council consideration of the bond ordinances on July 14; anticipated GEO and CO sales on July 22; a GEO refunding for utility system bonds on Aug. 6; and closings and delivery of proceeds expected Aug. 20 and Sept. 3. Following discussion, the board moved, seconded and voted unanimously to recommend the ordinances to council.
The board convened into a closed session at 9:12 a.m. to deliberate competitive public power utility matters under Texas Government Code Section 551.086 and reconvened at 9:31 a.m.; no official action was taken in closed session. The matter will proceed to city council for further consideration on the announced schedule.
Provenance: topic introduction in the transcript begins at SEG 029 and the topic discussion continues through SEG 276.
Matt Hamilton, chief financial officer, presented the combined proposal and the departmental uses for the certificates of obligation. He said the CO allocations include $17,400,000 for solid waste, $44,900,000 for water, $113,900,000 for wastewater and $58,400,000 for electric. Hamilton said the total CO request reflects an updated project list and excludes a previously considered $23,000,000 capitalized interest allowance.
Hamilton told the board that an analysis showed capitalizing interest would cost about $25,000,000 over the life of the bonds, so staff recommends structuring the amortization and issuance schedule to ease near‑term rate pressure without incurring the long‑term cost of capitalized interest. "So we are not proposing to move forward with the capitalized interest," Hamilton said.
The presentation also outlined an opportunity to refund outstanding debt issued in 2016–2017 at lower market rates (Hamilton cited current rates around 3.65% versus earlier rates near 5%). Staff projected aggregate, lifetime savings across departments of roughly $102,100,000 and noted that refunding a set of DME revenue bonds would produce about $13,700,000 in lifetime savings—approximately $700,000 a year over the remaining 20‑year term, Hamilton said.
Board members asked for clarification about the "general government" CO line; Hamilton said it covers facilities, technology services and predominantly vehicles used by the general fund and streets functions. He also clarified that certain streets and drainage projects are tied to the city's 2023 bond election and are not shown in the CO list because those items will be part of a separate GO sale.
The board discussed next steps and schedule: council consideration of the bond ordinances on July 14; anticipated GEO and CO sales on July 22; a GEO refunding for utility system bonds on Aug. 6; and closings and delivery of proceeds expected Aug. 20 and Sept. 3. Following discussion, the board moved, seconded and voted unanimously to recommend the ordinances to council.
The board convened into a closed session at 9:12 a.m. to deliberate competitive public power utility matters under Texas Government Code Section 551.086 and reconvened at 9:31 a.m.; no official action was taken in closed session. The matter will proceed to city council for further consideration on the announced schedule.
Provenance: topic introduction in the transcript begins at SEG 029 and the topic discussion continues through SEG 276.
View the Full Meeting & All Its Details
This article offers just a summary. Unlock complete video, transcripts, and insights as a Founder Member.
✓
Watch full, unedited meeting videos
✓
Search every word spoken in unlimited transcripts
✓
AI summaries & real-time alerts (all government levels)
✓
Permanent access to expanding government content
30-day money-back guarantee
