2025-063 - CO and GO Bond Sale Results Date: August 1,2025 Report No. 2025-063
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
City's most recent competitive bond sales for the Series 2025 General Obligation Refunding and
Improvement Bonds and Certificates of Obligation.
BACKGROUND:
The purpose of this report is to provide the City Council with details regarding the sale of Series 2025
General Obligation Refunding and Improvement Bonds and Certificates of Obligation authorized on July 15,
2025, with Bond Ordinances 25-1037 and 25-1038.
DISCUSSION:
On July 23, 2025, the City's financial advisor, Hilltop Securities, conducted competitive sales for
$78,320,000 in General Obligation (GO) Bonds and $232,645,000 in Certificates of Obligation (CO). The
delivery of funds to the City will be made on August 26, 2025.
The GO bonds were awarded to J.P. Morgan Securities, LLC and the CO's were awarded to Wells Fargo
Bank, NA., the lowest true interest cost bidders. Below is a list of all participating firms who placed bids on
each issuance.
GO Participating Firms Bid Submission CO Participating Firms Bid Submission
J.P.Morgan Securities,LLC 3.958935 Wells Fargo Bank,NA 4.344676
Wells Fargo Bank,NA 3.981007 BofA Securities 4.369846
Ke Banc Capital Markets 3.98854 J.P.Morgan Securities,LLC 4.373314
BofA Securities 3.999874 Jefferies,LLC 4.436305
Jefferies,LLC 4.007035 Truist Securities,Inc. 4.448214
Robert W.Baird&Co.,Inc. 4.025919 Morgan Stanley&Co.,LLC 4.473754
Truist Securities,Inc. 4.052199 Robert W.Baird&Co,Inc. 4.519245
Raymond James&Assoc.,Inc. 4.124223
The GO bonds included the issuance of $18,900,000 to fund the sixth and final year of the 2019 Bond
program, $24,61,000 to fund the second year of voter approved projects from the November 2023 bond
election and refunded a portion of the remaining principal amount the GO and CO Series 2015. As approved
by the City Council on July 15, 2025, the GO bond sale met all the following required parameters listed
below:
-Maximum principal amount of sale is $142,565,000;
-Final stated maturity of February 15, 2045;
-Maximum net effective interest rate of 5.00%;
-Delegation authority ends January 15, 2026.
Concurrently, the City also completed a competitive CO sale for $232,645,000 to support general
government, solid waste, water, wastewater, and electric projects. As approved by the City Council on July
15, 2025. the CO sale met all the following required parameters listed below:
-Maximum principal amount of sale is $254,050,000;
-Final stated maturity of February 15, 2055;
Date: August 1,2025 Report No. 2025-063
-Maximum net effective interest rate of 5.00%;
-Delegation authority ends January 15, 2026.
The all-in true interest cost for the GOs is 4.00%, and 4.37% for the COs which factors in the interest rate
received plus all issuance costs. The COs have a slightly higher borrowing cost because they have a longer
final maturity. City staff was pleased with the results of both sales.
Please do not hesitate to contact me if you have any further questions on the results of the City's most recent
debt issuance.
STAFF CONTACT:
Randee Klingele, Treasury Manager
940-349-8206
randee.klingelencityofdenton.com
REOUESTOR:
Staff Initiated
STAFF TIME TO COMPLETE REPORT:
.5 hour