Title
Hold a public hearing and consider ordinances authorizing the issuance of Water and Sewer Revenue Bonds, Series 2025, and Combination Lease and Airport Revenue Bonds, Series 2025.
Body
DATE: June 17, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Water and Sewer revenue bond and combined lease and airport revenue bond.
BACKGROUND AND FINDINGS:
The proposed ordinance authorizes the issuance of Water and Sewer Revenue Bonds, Series 2025, in an estimated amount of $37.50 million to fund seven capital improvement projects identified in the 2025 Water and Wastewater Master Plan (W&WWMP). These projects are included in the plan's 5-year capital forecast and are designed to address growth and infrastructure reliability:
Highway 195 24-Inch Water Line
$8,901,000
Highway 195 Ground Storage Tank
5,281,000
Chaparral Road 24-Inch Water Line
6,817,940
Featherline Road 24-Inch Water Line
3,516,300
Dead-End Looping/Auto-Flushing
3,000,000
Lift Station No. 6 Rehabilitation & Expansion
6,121,770
Trimmier Creek Basin 12-Inch WW
3,450,500
Issuance Cost
411,490
Total Water and Sewer Revenue Bonds
37,500,000
The estimated debt service requirement for the new revenue bond issue is included in the current rate structure and will be included in the FY 2026 budget. As prior water and sewer bond issues have fully matured, the corresponding debt service capacity will be redirected to cover the increase in debt service associated with the new bond issuance. Additionally, $2 million has been included in the FY 2026 budget as a debt service to support the upcoming bond payments.
The second ordinance authorizes the issuance of up to $3.55 million in Combination Lease and Airport Revenue Bonds, Series 2025, to finance the construction of a new 9,000-square-foot facility at the Killeen-Fort Hood Regional Airport. The facility will be leased to CSI Aviation, Inc. under a build-to-suit agreement and is expected...
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