Why are CO bonds funding these projects?

Certificates of obligation (CO) bonds are a form of long-term borrowing that cities can use to fund major capital projects. They are backed by the full faith and credit of the issuer,  which includes the power to tax its citizens. While ad valorem taxes guarantee these bonds, repayment of them will be funded 100% from fees charged to utility customers. CO bonds are not required to be approved by the voters. However, before the City can issue CO's, the City Council must approve a resolution stating the City's intent to issue the certificates. A notice must be published in the newspaper at least 45 days before the sale date stating the maximum amount to be issued, what the proceeds will be used for, and the date and time of the planned sale, along with additional information about the City's currently outstanding debt obligations.

The City has the option to issue revenue bonds, but those types of bonds have higher interest rates and require a reserve fund. Both revenue and certificates of obligation bonds increase borrowing costs and result in higher costs to our utility customers.

The City of Robinson's AA- bond rating, financial policies of maintaining adequate reserves, retiring debt in a responsible time frame, strong debt management policies, and regular audits lowers our borrowing costs, saving money over the life of the bonds.

Show All Answers

1. Why is the City issuing debt at this time?
2. Why are CO bonds funding these projects?
3. How is the debt on bonds repaid?
4. What if I have feedback regarding the Issuance of Certificates of Obligation?
5. Why aren't roads included in the 2023 CO Bond Issuance?
6. What projects are included in this Issuance of the 2023 CO's?
7. What is the City's current outstanding debt?