BRENHAM CITY COUNCIL APPROVES ISSUING UP TO $11 MILLION IN CERTIFICATES OF OBLIGATION, INCREASES WATER RATES
The Brenham City Council voted today (Thursday) to authorize issuing up to $11 million in certificates of obligation (COs) and approve a hike in water rates.
The COs will go toward water and wastewater system improvements. Of the $11 million, $5.9 million is for wastewater collection projects, $1.9 million is for groundwater projects, $1.6 million is for water distribution projects, and another $1.6 million is for the water plant expansion.
Ten bids were received from investors nationwide. The top bidder was PNC Capital Markets out of Philadelphia, coming in with a 3.51 percent interest rate over a 20 year note. The first bond payment is expected in August.
Jennifer Ritter, Managing Director at Specialized Public Finance, said the city’s AA- bond rating from Standard & Poor’s and economic growth did well to bring in a variety of competitive bids with low interest rates.
Ritter said the city is hitting the market at a “pretty good time,” noting that interest rates have been trending downward since late last year.
Mayor Atwood Kenjura said the strong bond rating and the 10 bids received are “great news” and thanked staff for helping the city maintain its strong financial standing.
City of Brenham's existing and newly approved
water rates,
(courtesy City of Brenham)
The water rate increases, which were approved without discussion from the council, are intended to recover higher costs driven by the new debt for the water plant expansion and groundwater well projects. This is the first of three proposed water rate increases annually.
The new rates will lead to residents paying an extra $3.41 per month for 5,000 gallons of usage, and an additional $6.01 per month for 10,000 gallons.
The rate changes also apply to commercial accounts, as they include an adjustment to the commercial water rate class to assess a higher minimum monthly charge on larger water meters. Previously, all commercial customers paid the same minimum monthly charge regardless of the size of their meter.
For example, with the commercial rate changes, commercial customers with a water meter less than an inch and who use 50,000 gallons monthly will need to pay $52.28 more per month, while an account with 200,000 gallons of usage will have $233.78 added to their monthly bill.
The water rate schedule with the updated pricing shows the effective date is April 1st.
of service in the city's wastewater construction
department.
In other business, councilmembers heard a first quarter financial update from Strategic Budget Officer Tim McRoberts. McRoberts said nearly all funds showed favorable net revenue for the first quarter and commented that sustained retail growth helped contribute to the city having its best ever December in terms of sales tax. He said overall, the city is “in good shape.”
During her administrative report at the conclusion of the regular meeting, City Manager Carolyn Miller announced that 22 candidates have applied for the position of fire chief, and 10 of them qualified for further consideration. She said the first review of applicants will come on March 20th.
Also at today’s meeting, the council:
- Approved a request to change the zoning district from a single-family residential district to a planned development district for approximately 28.09 acres of land at the northwest corner of West Jefferson Street and North Saeger Street for the Wilkins Valley subdivision.
- Approved an ordinance on its first reading amending the city’s 2023-24 adopted budget. The amendment transfers unreserved fund balance from the central fleet to the water fund to replace a Vermeer trailer mounted jet excavator.
- Approved an agreement with Aqua Metric for services related to the installation of a second advanced metering infrastructure base station at the Jefferies Street water tower. The city says the second base station will ensure it has the means to receive meter data in case of equipment malfunction or weather-related damage. The cost is $67,667.
- Accepted a bid for the Brenham Business Center sanitary extension project. The bid went to Texas KB Utilities of Chappell Hill for $821,000. The project is being funded by the Brenham Community Development Corporation.
- Denied repealing an ordinance for the non-exclusive franchise granted to General Site Services Dumpster Service for the operation of a roll-off container service in Brenham city limits, allowing GSS to continue operating in Brenham.
- Granted a non-exclusive franchise to Drop and Go Dumpsters to operate a roll-off container service in Brenham city limits.
- Held executive session talks regarding Commonwealth Development, Inc. v. City of Brenham; Fair Housing Case No. 06-22-3294-8. The case involves the proposed tax-credit housing development on Pecan Street that was rejected by the city council in February 2021. Additionally, the council was scheduled to consult with an attorney regarding legal issues concerning the city’s wastewater treatment plant, the Federal Emergency Management Agency and associated matters.
Click here to view the agenda packet for Thursday's meeting.