Eagle Pass City Council approves $8.5 Million Certificates of Obligation
By: Jose G. Landa
Copyright 2013 Eagle Pass Business Journal, Inc.
The City of Eagle Pass, Texas City Council unanimously approved an Ordinance authorizing the issuance of $8.5 Million of City of Eagle Pass, Texas Combination Tax and Limited Pledge of Revenue Certificate of Obligations, Series 2013, at its Special Meeting held on Tuesday, November 19, 2013, at City Council Chambers at City Hall in Eagle Pass, Texas.
The City of Eagle Pass seeks to use these $8.5 Million of bonds for improvement of certain public infrastructure, real properties, buildings, and other city projects to provide better services and quality of life programs in the city. Among the projects are the repair of city drainage projects, streets, and detention ponds damaged by the June 14-15, 2013 floods, the renovations to the Eagle Pass Public Library, the acquisition and/or renovations to the National Guard building for use as the new Eagle Pass Police Department headquarters, and other city projects.
David Gonzalez of Hinojosa, Estrada & Associates, the City of Eagle Pass financial advisors, advised the City Council that the Fitch bond rating system had given the City of Eagle Pass an A-Plus rating and the Standard & Poor’s rating system gave the City of Eagle Pass a Double A (AA) rating, the highest rating received by the City of Eagle Pass within the last 10-15 years. Gonzalez stated that “this is the first time that we have priced City of Eagle Pass bonds without having to purchase bond insurance.” “We did not have to purchase bond insurance because the City’s bond ratings were so high,” added Gonzalez. “We also took the City’s bonds to the open market instead of the private market,” said Gonzalez. The $8.5 Million bonds interest was set at 3.9% and the total principal and interest amount will be $12,099,000,” added Gonzalez. The total I.N.S. cost increase to pay for these bonds upon the City of Eagle Pass will be 4.7 cents, said Gonzalez.
Gonzalez also advised the City Council that “by taking the bonds to the open market the City saved over $200,000 in interest payments over the next 20 years and the City was able to add another $150,000 into its project fund and saved over $40,000 from not having to purchase bond insurance.” Gonzalez told City Council that the bonds had been priced earlier that day, November 19th, and if the City Council approved the Ordinance it could receive the $8.5 Million funds by December 19th.
After discussion, the Eagle Pass City Council unanimously approved the Ordinance authorizing the issuance of $8.5 Million of City of Eagle Pass, Texas Combination Tax and Limited Pledge of Revenue Certificate of Obligations, Series 2013.
Another agenda item approved was the third and final reading of an Ordinance amending Article IV, Chapter 15 (Gas and Gas Fittings) of the Code of Ordinances of the City of Eagle Pass, Texas, providing exceptions to the prohibitions of aboveground gas storage tanks and to provide penalties for violations of said Article as amended.
Another agenda item acted upon by the City Council in open session was the authorization of the City Attorney, Langley & Banack, to take action in a case styled United States of America vs. City of Eagle Pass, et al filed in the United States District Court, Western District of Texas, Del Rio Division, regarding the condemnation by eminent domain of City of Eagle Pass-owned real property for the construction and easements of ingress and egress to the notorious “Border Fence” along Shelby Park, the Municipal Golf Course, and other real property along the Rio Grande River vega. The United States of America and the City of Eagle Pass, as well as private landowners, are in negotiations on the amount of compensation to be paid by the federal government for the condemnation of real property for the construction of the Border Fence.
