The Treasury and Debt Management function of the Finance Department supports staff, management, and Council initiatives related to capital improvement and sustainability via proposals and management of bond programs and other financing opportunities. Staff also manages and oversees banking contracts, the daily implementation of financial policies, cash handling, purchasing cards, portfolio management, revenue projections, budget implementation, sales tax analysis, annual audits, and recovery.
In addition, the Town has adopted Financial Management Policies (PDF) and Investment Policies (PDF) designed to maintain and improve the financial health and well-being of the Town as well as safeguard funds in accordance with Local Government Code, Chapter 2256, the Public Funds Investment Act.
NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION OF THE TOWN OF PANTEGO, TEXAS
Legal Notice - Town of Pantego, Texas.pdf
NOTICE IS HEREBY GIVEN that the Town Council of the Town of Pantego, Texas, at its meeting to commence at 6:00 p.m. on September 22, 2025, at its regular meeting place in the Town Council Chamber, 1614 S, Bowen Road, Pantego, Texas, tentatively proposes to adopt an ordinance authorizing the issuance of interest bearing certificates of obligation, in one or more series, in an amount not to exceed $3,300,000 for paying all or a portion of the Town’s contractual obligations incurred in connection with:
(i) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Town's waterworks and sewer system, including wells, treatment facilities, storage facilities, water and sewer lines, lift stations, manholes, pumps, valves, SCADA systems and related infrastructure improvements; and
(ii) paying legal, fiscal and engineering fees in connection with such projects.
The maximum interest rate for the certificates may not exceed the maximum legal interest rate. The maximum maturity date for the certificates shall not exceed the maximum maturity permitted by law. The estimated combined principal and interest required to pay the certificates to be authorized on time and in full is $5,629,002.00. The current principal of all outstanding debt obligations of the Town is $14,285,000.00. The current combined principal and interest required to pay all outstanding debt obligations of the Town on time and in full is $21,063,506.25.
The Town proposes to provide for the payment of such certificates of obligation from the levy and collection of ad valorem taxes in the Town as provided by law and from a pledge of certain surplus revenues of the Town's waterworks and sewer system, remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with all of the Town's revenue bonds or other obligations (now or hereafter outstanding), which are payable from all or any part of the net revenues of the Town's waterworks and sewer system.
The certificates of obligation are to be issued, and this notice is given, under and pursuant to the provisions of V.T.C.A., Local Government Code, Subchapter C of Chapter 271.
TOWN OF PANTEGO, TEXAS
Outstanding Debt
The Debt Service Fund accounts for the accumulation of resources to be used for the reserve requirements and payments on existing and incurred debt. The Council allocates ad-valorem (property) tax revenues to this fund for such purposes.
Town of Pantego Outstanding Debt (as of September 30, 2023)
Pantego Economic Development Corporation (PEDC) Outstanding Debt (as of September 30, 2023)
Comptroller's Local Debt Report
(Fiscal Year Ended September 30, 2022)
Types of Debt Issuances
General Obligation (GO) Bonds are backed by the full faith and credit of the entity, meaning that the Town pledges to leverage its taxation power to generate enough revenue to pay back the bond under any circumstances and includes this type of debt in tax rate calculations. These bonds require voter approval and can only be used to fund the projects authorized in the ballot propositions. This type of debt is typically utilized for non-critical improvements such as new facilities.
Certificates of Obligation (CO) are very similar to GO Bonds except they do not require voter approval. The Town Council, instead, advertises their notice of an intent to issue debt at least 45 days prior to the proposed sale. This type of debt is typically used when the related project is deemed to be critical to the protection of public safety and the provision of basic services. Because CO bonds are backed by property tax revenue, they are included in the calculation of the tax rate necessary to support debt payments.
In 1993, Pantego voters approved the dedication of one-half cent of sales tax revenues for economic development. Economic Development Sales Tax Bonds can be issued by the Pantego Economic Development Corporation (PEDC) for projects that are qualified for funding via this legally restricted revenue stream.
Utility Revenue Bonds can be issued to finance capital projects and improvements related to the water, wastewater, and stormwater systems. This type of bond is repaid through fees charged to the customers of the water system rather than property tax revenues.