Eagle Pass City Council Approves $32 Million Certificates of Obligation for Several City Projects

By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2018

The City of Eagle Pass, Texas City Council unanimously approved to issue $32 Million in Certificates of Obligation to fund the development and improvement of several much needed City Projects at their Special Meeting held on Tuesday, September 25, 2018.

David Gonzalez of Estrada Hinojosa, City of Eagle Pass Financial Advisors, told the Eagle Pass City Council that the City would be receiving an interest rate of 3.6% on the Certificates of Obligation and that the City would actually receive a $3 Million savings on the Certificates of Obligations over a 20 year period, requiring that the City only need to spend $29,110,000 (Millions) instead of the originally proposed $32 Million.

Juan Aguilera, City of Eagle Pass Bond Counsel, advised the City Council that if they approved the Ordinance that same day, September 25th, that the City would receive $31 Million of these funds by October 25, 2018.

Among the earmarked projects targeted for these $32 Million in Certificates of Obligations, or also known as Bonds, include $16,571,260 (Million) for a Sports Complex at Fort Duncan Park; $5.6 Million for City Drainage Projects to avoid flooding in Rancho Escondido, Bibb Avenue and Misty Willow, Treasure Hill, and Westlakes subdivisions; $2,813,844 (Million) to renovate and improve the Second Street Fire Station; $2 Million to improve the City Public Works Facility on Eidson Road; $1,250,000 (Million) to purchase and install a new City Emergency Communications System; $1,000,000 (Million) for a Hike and Bike Trail within the City at a site to be determined; and $542,184 for a new Heating and Air Conditioning System and Roofing for the Multi-Purpose Center.

City Finance Director Jesse Rodriguez advised the City Council that the $32 Million would be paid by the City’s International Bridge Enterprise Fund and would not cost taxpayers any increase in their 2018 ad valorem tax rate.  Rodriguez emphasized that the City’s International Bridge Enterprise fund would cover the cost to pay for the monthly payments and interest on the $32 Million.  

Mayor Pro-Tem Yolanda P. Ramon made the motion to approve the $32 Million in Certificates of Obligation and seconded by Councilmember Rudy Villalpando, causing Mayor Ramsey English Cantu to call it for a vote at which time it was approved unaimously.

The City of Eagle Pass should receive $31 Million of these fund by October 25, 2018. City Finance Director advised City Council that once they approved the Ordinance, the City can commence the projects by sending requests for proposals or bids immediately and later get reimbursed once the funds are received.