During this morning’s meeting of the Brownwood City Council, an ordinance was approved authorizing the issuance and sale of a certificate of obligation. Back in February, the council had a discussion with staff on street work progress and potential new financing. On April 12^th, the staff presented the council with options on issuing new debt for the work previously discussed along with a list of other potential projects. After further discussion, the council decided on issuing a new certificate of obligation for $3,000,000. Included in this decision was approval of the use of a wrap-around option to defer principle payments on the new debt until an older debt had paid off in 2018. The certificate of obligation is to be sold on private placement. City staff requested bids from 22 banks and received one back from TexasBank. It is estimated that the funding from the bond will take place July 12. The low bid included a blended interest rate of 4.08%. Because of that percentage being lower than expected, it will lower projected interest costs in the first two years from $165,000 to $141,000. It will also lower annual debt service beginning in 2018 from $313,000 to $300,000. Overall, $167,000 in interest costs will be saved over the 15 years of the bond.

In other business, the council authorized Mayor Stephen Haynes to sign an annual certification for the United States army TACOM Life Cycle Management Command. In July of 2008, the council approved a resolution stating the city would assume responsibility for the upkeep and safety of the United States military equipment on display at Camp Bowie Memorial Park. The city is required to provide a certificate of demilitiarization for each weapon system located at the park. The city is required to provide an annual certification of Army materiel status for each weapon system by July of each year. This is a yearly inspection report.

The council also approved a resolution allowing the dissolution plan for the Brownwood Economic Development Corporation. Following the successful election which terminated the BEDC and created the Municipal Development District, state law requires that the BEDC wind down its affairs and continue operations only as necessary to pay the principal and interest on current bonds and to meet financial obligations incurred prior to the election and to dispose of assets and apply the proceeds to satisfy bonds and obligations. By the end of June, the city will certify to the Texas Comptroller that all bonds, debts and financial obligations of the BEDC have been paid. Beginning on October 1^st, the MDD will start earning sales tax allocations and will receive its first payment.