Sachse city officials are considering the issuance of up to $18.15 million in combination tax and revenue certificates of obligation to fund a variety of infrastructure and municipal facility projects.

According to a public notice issued by the city, Sachse City Council is expected to consider authorizing the debt in August at a council meeting.

The proposed certificates of obligation would finance street and roadway construction and improvements throughout the city, including associated drainage, traffic signalization, landscaping, sidewalks, lighting, utility relocation and replacement, bridges, signage and streetscape enhancements.

The funding would also be used for the construction, improvement and equipping of administrative office and departmental space for city governmental functions. A portion of the proceeds would cover legal, engineering and financial costs associated with the projects.

If approved, the certificates would be issued in one or more series and would be repaid through a combination of property tax revenues and a limited pledge of surplus revenues from the city’s water and sewer utility system after operating expenses and existing debt obligations have been met.

The city reported it currently has approximately $68.63 million in outstanding debt obligations. The combined principal and interest required to retire that debt is approximately $92.21 million.

The proposed certificates would add up to $18.15 million in principal, with an estimated total repayment cost of approximately $26.09 million, including interest, if issued at the maximum authorized amount.

City officials stated the certificates would have a maximum maturity date of Feb. 15, 2046. The interest rate could not exceed the maximum rate allowed by state law.

Certificates of obligation are authorized under Texas law and allow local governments to finance public projects without voter approval unless a petition election is successfully initiated by residents.

The Sachse City Council is scheduled to consider the authorization during its regular meeting beginning at 6:30 p.m. Aug. 3 at Sachse City Hall, 3815 Sachse Road, Building B.

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