City Council approves $84M funding for police station and wastewater plant expansion

In a pivotal meeting held at the Anna City Hall, city officials gathered to discuss the financing of two major infrastructure projects: a new police station and an expansion of the wastewater treatment plant. The atmosphere was charged with anticipation as Budget Manager Terry Doby introduced financial advisor Andre Ayala from Hilltop Securities, who presented the results of the recently priced certificates of obligation.

Ayala revealed that the city secured an impressive $84 million in proceeds from the bond issuance, which will be allocated to the public safety facility and water treatment plant. This 25-year financing plan is structured to be repaid through a combination of property taxes and surplus revenues from the city’s waterworks and sewer system. Notably, the fixed interest rate of 4.77% came in below the previously budgeted rate of 4.98%, a welcome development for the city’s financial outlook.

The meeting highlighted the city's strong bond ratings, affirmed by both Standard and Poor's and Moody's, which played a crucial role in attracting a competitive bidding environment. Ayala noted that the transaction garnered interest from a wide range of bidders, including major firms like JPMorgan Chase and Bank of America, ultimately resulting in 12 bids—a rare occurrence in municipal finance.

The best bid came from BOK Financial Securities, which has a history of working with the city. The successful bidding process not only reflects the city's solid financial standing but also indicates a growing confidence in Anna's future development. The total debt service over the 25-year period is projected to be approximately $159.6 million, which is about $6 million under budget due to the favorable interest rate.

As the meeting concluded, city officials expressed optimism about the projects, which are expected to enhance public safety and improve essential services for residents. The successful financing marks a significant step forward for Anna, setting the stage for future growth and development in the community.