Bryan City Council members voted 5-1 Tuesday to approve the issuance of a bond in the maximum principal amount of $75,150,000.
Mayor pro tem and councilman Greg Owens was absent from the meeting and did not vote. Councilman Mike Southerland voted against the issuance of the bond.
In a presentation at the meeting, outside financial adviser Steven Adams said the certificates of obligation will be used to fund the Villa Maria Regional Park project for costs of $59 million to be paid off over a 30-year term, streets and drainage for $12.8 million that will be paid off over a 25-year term and a fire truck at the cost of $900,000, which will be paid over a 10-year term. The bond is set at a maximum amount of about $75 million, Chief Financial Officer Joe Hegwood said, because the market value can change throughout the time the bond is allowed to sell. However, he added, staff does not expect it to go above $73 million.
“We try not to finance things longer than the life of the asset,” Hegwood said. “The regional park — generally we don’t finance things 30 years long, but since this is kind of a one-in-a-100-year type of thing, we’re using a longer term for it since it will be there for a long time.”
Hegwood said the certificates of obligation must be sold within 180 days and are scheduled to sell Feb. 5.
Visit bryantx.gov to watch the council meeting.