Rosenberg City Council members agreed to refinance bonds, rather than pay off nearly $8 million in debt. But at Tuesday night’s regular city council meeting, council members also voted to pay off $1.43 million in certificates of obligation and obligation refunding bonds, or debt.
The certificates were issued in the original principal amount of $1,835,000 and the bonds were issued in the original principal amount of $6,435,000 eight years ago.
The certificates had an outstanding balance of $780,000, and the bonds had an outstanding principal balance of $1,285,000.
“The total debt service of that $1.43 million is $1.53 million, which includes the interest you would have paid,” Rosenberg City Financial Advisor Lindsay Evans said.
Mayor Bill Benton asked if that would reduce the city’s debt. Evans explained that it would. “We’ll take that reduction,” he responded.
According to Assistant City Manager Joyce Vasut, the city’s current debt is $66 million. With the scheduled payments for fiscal year 2020, debt balance at the end of 2020 will be $60 million.
Council member Issac Davila commended the city on paying its debt. The rest of council echoed his praises. Vasut said the redemptions are irrevocable upon adoption of this resolution.
“So after we vote on this tonight and we say this is what we want to do, we can’t come back at our next meeting and say, ‘oops, we changed our mind, we don’t want to do this, we want to go ahead and do something different.’?” council member Lisa Wallingford asked, Vasut said that was correct.
Council member Jacob Balderas then made a motion to pay off $1.43 million in debt. The motion was seconded by Wallingford and passed unanimously.
“The ayes have it,” Benton said. “We hope to reduce our debt.”
The next Rosenberg City Council meeting will be held Nov. 19 at 6:30 p.m.
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