News Story

At its August 9 meeting, the Council passed two Resolutions authorizing the issuance of bonds for proposed streets, infrastructure, parks, and building updates. Council approved the sale of $13 million of Certificates of Obligation to be used for the following purposes:

•  On November 13, 2018, the City Council directed the City Manager to pursue issuing Certificates of Obligation to fund a portion of the budgeted $41 million reconstruction of Midway Road. In 2012 voters approved $16 million in funding for this reconstruction project. The Town issued $15,000,000 in Certificates of Obligations in 2019 for the purpose of reconstructing Midway Road with a $10,000,000 in Certificates of Obligations included in this issuance. This will complete the Certificate of Obligation issuances for the Midway Road Project.
• $3,000,000 in Certificates of Obligations are for the purpose of funding planned capital improvements projects related to water and sewer utility improvements over the next two to three years including Lake Forest Drive Utility Improvements, Surveyor Pump Station Electrical Upgrades, and Beltway Drive/Belt Line Road Water Main Replacement.

The bonds were issued for 20 years with an interest rate of 3.3768% as well as a $604,277 premium which resulted in a lower issuance principal amount of $12,495,000. After payment of bond issuance costs, the Town will still receive the $13 million needed for these projects. 

Council also approved the issuance of General Obligation Bonds totaling $10,518,000 for the following projects:

• $5,000,000, from the authorized $16,000,000 ($11,000,000 issued to date), from Proposition 1 of the 2012 Bond Election for reconstruction of Midway Road. Council awarded a construction contract to Tiseo Construction on December 8, 2020. The project is currently under construction with an anticipated completion date in Fiscal Year 2024.
• $3,213,000, from the authorized $6,723,000 ($3,510,000 issued to date), from Proposition C of the 2019 Bond Election for parks and recreation improvements and facilities. Council approved a contract for design of Les Lacs pond improvements on June 14, 2022. Design will take approximately 12 months with construction anticipated to begin in the Summer of 2023.
• $2,305,000, from the authorized $7,395,000 ($5,090,000 issued to date), from Proposition D of the 2019 Bond Election for improvements to existing municipal buildings. The funds will be used for phase two of facilities improvements projects which includes roof, HVAC, and ADA improvements at various Town facilities. It is anticipated that all phase one projects will be completed by the end of Fiscal Year 2022.

These bonds were issued for 20 years with an interest rate of 3.3665% as well as a $467,305 premium which resulted in a lower issuance principal amount of $10,140,000. After payment of bond issuance costs, the Town will still receive the $10,518,000 needed for these projects. 

The financial impacts of the General Obligation bond issuance were less than the projections included in the materials provided to the public as part of the 2019 Bond Election process.

Addison is one of only 11 cities in Texas with a AAA with both Moody's and S&P. You can watch Council's bond discussion here.