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City to discuss changing financial firm
By ARTHUR HAHN/Managing Editor
A special meeting will be held Thursday by the Brenham City Council to discuss changing the city’s financial advisory firm on the eve of a $6 million debt issuance.
The council will meet at 8:30 a.m. in City Hall, 200 W. Vulcan, to discuss terminating a “financial advisory agreement” with First Southwest Co. and authorize an agreement with Public Finances Inc. to provide those same services.
City Manager Terry Roberts said staffers are recommending the change because Garry Kimball, a First Southwest financial advisor who has handled Brenham’s account for more than a decade, has decided to strike out on his own.
“Garry Kimball has decided to go out on his own as a financial advisor,” said Roberts. “He decided to start his new firm as of Thursday of last week.”
Kimball has been with First Southwest for more than 15 years, and of that term has advised the city of Brenham on financial matters — including several debt issuances “for over a decade,” Roberts said.
“It’s not that another financial advisor at First Southwest wouldn’t give us good advice, but we’re very comfortable with Garry,” he added.
Roberts said the city is “still on track” to act on a $6 million issuance of certificates of obligation (COs) at its Nov. 20 meeting, even if the switch is made to Kimball’s firm.
That debt will be issued to pay for a new water tower in west Brenham to take care of pressure problems in that area of the city. It will also fund Phase One of distribution line work that would be needed, including in the Atlow area, and pay for repairs needed at the city’s water intake structure in Lake Somerville.
Kimball has already put in most of the work needed for that debt issuance.
“What Garry has been doing is reviewing the markets, and one of the options is to do a private placement with a financial firm,” said Roberts. “Depending on exactly how the market looks next week is when we’ll make a decision on whether to do private placement or go through a longer process.”
A private placement would reduce debt issuance costs somewhat.
The water system COs will probably have to be issued by Dec. 31 because of constraints on how much debt the city can put in private placement each year, said Roberts.
Coming up next year will be issuance of debt to fund a portion of the U.S. 290 improvements. The city will issue $15 million to pay for a portion of the work, then be reimbursed for the principle by the Texas Department of Transportation.
The city and county have agreed to split interest costs.
An executive session will also be held Thursday to consult with city attorney Carey Bovey on legal matters related to the termination of the First Southwest contract.
The council will meet at 8:30 a.m. in City Hall, 200 W. Vulcan, to discuss terminating a “financial advisory agreement” with First Southwest Co. and authorize an agreement with Public Finances Inc. to provide those same services.
City Manager Terry Roberts said staffers are recommending the change because Garry Kimball, a First Southwest financial advisor who has handled Brenham’s account for more than a decade, has decided to strike out on his own.
“Garry Kimball has decided to go out on his own as a financial advisor,” said Roberts. “He decided to start his new firm as of Thursday of last week.”
Kimball has been with First Southwest for more than 15 years, and of that term has advised the city of Brenham on financial matters — including several debt issuances “for over a decade,” Roberts said.
“It’s not that another financial advisor at First Southwest wouldn’t give us good advice, but we’re very comfortable with Garry,” he added.
Roberts said the city is “still on track” to act on a $6 million issuance of certificates of obligation (COs) at its Nov. 20 meeting, even if the switch is made to Kimball’s firm.
That debt will be issued to pay for a new water tower in west Brenham to take care of pressure problems in that area of the city. It will also fund Phase One of distribution line work that would be needed, including in the Atlow area, and pay for repairs needed at the city’s water intake structure in Lake Somerville.
Kimball has already put in most of the work needed for that debt issuance.
“What Garry has been doing is reviewing the markets, and one of the options is to do a private placement with a financial firm,” said Roberts. “Depending on exactly how the market looks next week is when we’ll make a decision on whether to do private placement or go through a longer process.”
A private placement would reduce debt issuance costs somewhat.
The water system COs will probably have to be issued by Dec. 31 because of constraints on how much debt the city can put in private placement each year, said Roberts.
Coming up next year will be issuance of debt to fund a portion of the U.S. 290 improvements. The city will issue $15 million to pay for a portion of the work, then be reimbursed for the principle by the Texas Department of Transportation.
The city and county have agreed to split interest costs.
An executive session will also be held Thursday to consult with city attorney Carey Bovey on legal matters related to the termination of the First Southwest contract.
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