By Michael V. Hannigan/HCNow
The Athens City Council approved going forward with its plan to issue certificates of obligation for up to $12.5 million Monday night.
The certificates of obligation (debt) will provide the majority of funding for the $12.8 million Capital Improvement Projects plan the council approved in August. In previous meetings, City officials said they expect to borrow about $12.17 million for the projects.
Included among those capital improvements are $10.5 million for a municipal buildings project (Cain Civic/Aquatic Center, police department) and $1.4 million for the Texan Theater.
According to information found on the Texas Municipal League (TML) website, cities use certificates of obligation — which do not require an election — to “take advantage of favorable interest rates or an opportunity to acquire a property, to make emergency repairs after a disaster, or to address a critical public need without having to wait for the next uniform election date on the calendar.”
In the past, Athens officials have said they are trying to lock in favorable interest rates while they can. Officials are hoping for an interest rate of under 3 percent.
State law does gives citizens the right to petition for an election on debt incurred through certificates of obligation.
If 5 percent of qualified voters sign a petition before the certificates of obligation pricing date, then an election must be held on whether the certificates should be issued.
The expected pricing date for the City’s certificates of obligation is December 12.
The City has to wait at least 30 days after publishing notice of its intent before issuing the certificates.
According to the Henderson County Voter Registration Office, there are 6,936 registered voters in Athens. Five percent of that number would be 347 voters.