The Levelland City Council authorized the issuance of certificates of obligation for the waste water treatment plant that was approved earlier this month.
During the regular meeting held Monday, Hilltop Securities Representative Robert Spears gave a brief update regarding the issuance of the bonds.
On October 17th, council approved the first notice of intent to issue taxable certificates of obligation. The maximum principal amount authorized was $20 million.
The estimated total debt service is $39.9 million.
With an A plus credit rating, the assured guaranty credit rating is double A.
The taxable certificates of obligation with a final par amount of $19.6 million and produces $19.3 million in project proceeds. The final true interest cost is 5.31 percent.
At the time of the October 17 projection, the total debt service was roughly $33.9 million and an average annual debt service fee of $1.6 million.
Pricing as of December 5, has the total debt service at $31.5 million and an average annual debt service fee of $1.5 million.
The certificates are callable in 10 years on August 15,2032 and are currently scheduled to close on Thursday, December 29.
The city will be looking at making a monthly payment of roughly $1,500 every September until 2042.
City Manager Brandon Anderson explained that the everything that is associated with the cost of the mechanical plant.
With the price of labor, materials and overall goods increasing, if that presents an issue during the construction process, Anderson added that there are contingencies already in place to cover those scenarios down the road if they are needed.
During the meeting, the council went into executive session before their final decision of reappointing or appointing a Municipal Court Judge.
Coming out of the session, it was announced that the council would be moving forward with a new individual.
Shawn Wilson with the Levelland Police Department was appointed the Municipal Court Judge.
Pat Vigil, an EMS representative spoke to the council asking for assistance in response to a numerous calls for needing service.
Vigil explained that one of their ambulance units was wrecked in May, and finding replacements has been difficult.
Being down one unit, the large number of calls has placed a lot of pressure on the service.
Assistance was requested from regional partners, but Vigil sees March being the earliest they can receive help. Whith that time line that puts a possible gap in service.
The City of Levelland has an ambulance unit that is currently not in service, and Vigil suggested allowing EMS to lease the unit for six months until relief can be found, then at that time a discussion can be held about buying the unit or dropping the lease.
Council members shared their concerns with Vigil, but expressed that the lease could be discussed should EMS handle maintenance fees for the vehicle.
The unit is jointly owned by the city and Hockley County.
The topic will need to appear on a Commissioner’s Court agenda before anything is finalized.
The council approved for Anderson to negotiate on behalf of the city.