HomeMy WebLinkAbout2026-049 GO and CO Bond Sale ResultsAugust 14, 2026 Report No. 2026-049
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
The results of the City’s most recent competitive bond sales for the Series 2026 General Obligation
Refunding and Improvement Bonds, Certificates of Obligation and General Obligation Refunding Bonds,
Series 2026A.
BACKGROUND:
The purpose of this report is to provide the City Council with details regarding the sale of Series 2026 and
2026A bonds authorized on July 14, 2026, with Bond Ordinances 26-0804 and 26-0805.
DISCUSSION:
On July 21, 2026, the City’s financial advisor, Hilltop Securities, conducted competitive sales for
$62,550,000 in General Obligation (GO) Bonds and $280,025,000 in Certificates of Obligation (CO). The
delivery of funds to the City will be made on August 20, 2026.
The GO bonds were awarded to BOK Financial Securities, Inc. and the COs 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
the 2026 GO and CO issuance.
GO Participating Firms Bid Submission CO Participating Firm Bid Submission
BOKF Financial Services 3.981339 Wells Fargo Bank, NA 4.335870
B of A Securities 3.986671 B of A Securities 4.344939
Robert W. Baird & Co Inc. 4.009910 JP Morgan Securities, LLC 4.362790
JP Morgan Securities, LLC 4.030485 Robert W. Baird & Co, Inc. 4.364078
Wells Fargo Bank, NA 4.036870 Morgan Stanley & Co, LLC 4.370283
PNC Capital Markets LLC 4.114217 Jeffries LLC 4.396090
The GO 2026 bonds included the issuance of $44,223,000 to fund the third year of voter approved projects
from the November 2023 bond election, refunded a portion of the remaining principal amount CO Series
2016 and the remaining principal amount Utility Revenue System Revenue Bonds 2017. As approved by the
City Council on July 14, 2026, the GO bond sale met all the following required parameters listed below:
- Maximum principal amount of sale is $316,338,000;
- Final stated maturity of February 15, 2046;
- Maximum net effective interest rate of 5.00%;
- Delegation authority ends January 14, 2027.
Concurrently, the City also completed a competitive CO sale for $280,025,000 to support general
government, solid waste, water, wastewater, and electric projects. As approved by the City Council on July
14, 2026, the CO sale met all the following required parameters listed below:
-Maximum principal amount of sale is $295,000,000;
-Final stated maturity of February 15, 2056;
-Maximum net effective interest rate of 5.250%;
-Delegation authority ends January 14, 2027.
August 14, 2026 Report No. 2026-049
On August 6, 2026, the City’s financial advisor, Hilltop Securities, conducted a competitive sale for
$132,675,000 in General Obligation Refunding Bonds 2026A with a delivery of funds to the City on
September 3, 2026. Below is a list of all participating firms who placed bids on each issuance.
Refunding Participating Firms Bid Submission
B of A Securities 3.358742
Goldman Sachs & Co 3.366385
JP Morgan Securities, LLC 3.369997
Well Fargo Bank, NA 3.375007
Cabrera Capital Markets, LLC 3.382871
Morgan Stanley & Co, LLC 3.411446
Jefferies, LLC 3.411769
TD Financial Products, LLC 3.437415
Raymond James & Associates, Inc 3.458117
Huntington Securities, Inc 3.458759
PNC Capital Markets, LLC 3.464630
Mesirow Financial, Inc 3.479966
Robert W. Baird & Co, Inc 3.485953
The all-in true interest cost, which is calculated by also including issuance costs, resulted in the following:
• The all-in true interest cost on the GO financed 2023 bond projects is 4.09%. Additionally, the all-in
true interest cost on the refunding component is 3.80%, with net present value savings of $1.49
million.
• The all-in true interest cost for the 2026 COs is 4.37%.
• The all-in true interest cost for the 2026A refunding GOs is 3.40% with net present value savings of
$11.879 million.
City staff was pleased with the results of all three 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
Randee.Klingele@cityofdenton.com
940-349-8206
REQUESTOR:
Staff Initiated
STAFF TIME TO COMPLETE REPORT:
1.0 hour