The Weatherford City Council Tuesday voted to issue $4.62 million in certificates of obligation to fund drainage projects along two Weatherford creeks.
“Basically, what we are going to use these series 2018 certificates for is we’re going to build a rock plunge basin for Holland Lake Creek near Timber Creek Estates,” Assistant City Manager Brad Burnett said. “We’re going to do approximately 1,000 feet of modular retaining wall along the 100-year flood line in Timber Creek Estates.
“And we’re going to build a modular retaining wall drainage structure along Black Warrior Creek in Heritage Park east of Santa Fe Drive.”
All the projects are listed in the storm water utility capital, Burnett said.
“Those projects are ready to go right now,” Burnett told the council. “So we’re going to go through that money fairly quickly. [Director of Capital Transportation Projects] Terry [Hughes] has both projects already engineered, I believe. We’re ready to go.”
The debt is a 20-year issuance but can be paid back in as few as 10 years.
Both storm water utility revenue and city tax dollars were pledged to repay the debt.
“The city did receive an upgrade on its rating,” Boyd London of Hilltop Securities told city council members.
The city’s bond rating from S&P Global was upgraded from AA- to AA on the city’s general obligation bonds, tax notes and certificates of obligation, indicating that the city’s risk of defaulting on its debt is very low.
“The rating action reflects our view of Weatherford’s improved wealth and income levels resulting from continued economic growth, and is further supported by very strong budgetary flexibility and liquidity as well as strong management,” S&P Global wrote.
“The city of Weatherford has always operated well financially,” London told the council. “And it’s not the financial operations that keep it from being a triple A rated city. It’s simply the economic situations. Your income per capita is not where it is with some of the triple A rated cities. As you grow, that’ll rise.”