Council Authorizes Issuance of Bonds

At its August 8 meeting, the Council passed two Resolutions authorizing the issuance of bonds for proposed streets, infrastructure, parks, and building updates. Council approved the sale of $4.6 million of Certificates of Obligation to be used for the following purposes:

 $2,050,000 for the purpose of public infrastructure improvements in Vitruvian Park. The Town has an investment commitment of approximately $50M and, to date, has invested approximately $37M in public infrastructure in Vitruvian Park. After this proposed issuance, approximately $11M of investment will remain. 

1. $2,550,000 for the purpose of funding planned roadway capital improvements projects related to the Addison Airport, serviced by revenue from the Addison Airport, including reconstruction of Jimmy Doolittle Drive and the east side airport service road.

 The bonds were issued for 20 years with an interest rate of 3.77% and a $206,604 premium resulting in a lower issuance principal amount of $4,355,000. After payment of bond issuance costs, the Town will receive over $4.5 million for these projects.

 Council also approved the issuance of General Obligation Bonds totaling $5 million for the following projects approved by voters during the 2019 Bond Election:

 $900,000 for the reconstruction design of Monfort Drive

1. $4.1 million for the reconstruction design of Quorum Drive

 Design contracts for both projects have been approved by the Council.

 These bonds were issued for 20 years with an interest rate of 3.79% and a $198,619.30 premium resulting in a lower issuance principal amount of $4,865,000. After payment of bond issuance costs, the Town will still receive the $5,000,000 needed for these projects.

 The financial impacts of the General Obligation bond issuance were less than the projections included in the materials provided to the public as part of the 2019 Bond Election process. Addison is one of only 11 cities in Texas with a AAA with both Moody's and S&P. 

You can watch Council's bond discussion here.