BELTON, Texas (KXXV) — The Belton City Council has postponed the sale of up to $17.7 million in certificates of obligation, citing volatility in the municipal bond market.
During Tuesday’s meeting, Finance Director Mike Rodgers told council members that unexpected interest rate spikes prompted the city’s financial advisor to recommend delaying the issuance. Interest rates rose by 36 basis points the day before the scheduled sale — an unusual jump that could have significantly raised the city’s borrowing costs.
The funds were intended to support several key capital projects, including:
- Belton’s $17.8 million portion of the Temple-Belton Wastewater Treatment Plant expansion
- $1.75 million for improvements to the city’s primary lift station force main
- $2.3 million for utility relocations related to Loop 121 expansion
- $1.7 million for a new aerial fire truck
- $750,000 to acquire the former Miller Heights Elementary School site
To minimize debt, the city plans to contribute $6.6 million in cash toward these projects. Instead of approving the bond ordinance, council members passed a resolution delaying the action until the next scheduled meeting on April 22. The resolution allows Belton to retain its notice of intent and proceed later without restarting the issuance process. The City Attorney and bond counsel confirmed that the delay complies with state law and maintains the city's flexibility should further adjustments be needed. The city has 90 days from April 8 to complete the bond sale without issuing a new notice.
