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5PM // Cozby Library and Community Commons
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At the July 24, 2018 meeting, the Coppell City Council unanimously voted to approve an ordinance authorizing the City to issue Combination Tax and Limited Surplus Revenue Certificates of Obligation in the amount of $42,405,000. These bonds will be used to fund necessary quality of life projects and improvements.
Previously, the City Council authorized City staff to move forward with a notice of intent to issue $46,185,000 in Certificates of Obligation. Because of the City's AAA bond rating and market conditions, the certificates sold at a premium with an interest rate of 3.19 percent. The City was therefore able to reduce the amount of debt issued, which will save tax payer funds in the long-term.
"Our AAA bond rating is significant because it lowers the cost of borrowing for Coppell taxpayers," said Jennifer Miller, Director of Finance. "We were able to reduce the amount of debt we had to issue, which meant that we were able to be better stewards of public monies while still taking on projects that will positively impact the lives of our residents."
The City Council also approved a resolution authorizing the City to execute an agreement with the Coppell Recreation and Development Corporation (CRDC) for the construction of the long-anticipated Arts Center. The City and CRDC have established an inter-local agreement in which the CRDC pledges the sales tax revenue, of which approximately 65% is collected from businesses and corporations, for the Arts Center debt repayment.
"We have an agreement with CRDC stating that they will pay their share of the principal and interest on the bonds," said Miller. "The City issued the certificates of obligation, but the CRDC will transfer sales tax revenue to the City for the repayment of principal and interest."
Likewise, water and sewer revenue collected from residential and commercial utility payments will be used to pay the principal and interest related to the portion of the bonds used for Water and Sewer System projects.
The certificates of obligation will be used to fund the followingprojects:
For more information about of certificates of obligation or other sources of City funding, contact the Finance Department at 972-304-3691.