City of Alamo Heights Announces Intent to Issue Up to $8 Million in Certificates of Obligation

Alamo Heights has announced its intention to issue up to $8 million in Combination Tax and Revenue Certificates of Obligation to fund water and sewer infrastructure improvements throughout the city.

According to the public notice issued May 12, 2026, the funding would support the construction, acquisition, and equipping of improvements to the city’s waterworks and sewer system. The certificates would also help cover associated legal, fiscal, and engineering costs tied to the projects.

City officials stated the debt would be repaid through a combination of ad valorem taxes and surplus revenues generated by the city’s waterworks and sewer system.

The notice was issued in accordance with Texas Local Government Code requirements, which mandate municipalities publicly disclose debt information before authorizing certificates of obligation.

According to the city, the current principal amount of outstanding public securities secured by ad valorem taxes is approximately $12.74 million. The combined principal and interest required to repay existing obligations totals about $15.18 million.

The estimated combined principal and interest repayment for the proposed certificates is approximately $13.8 million. Officials noted the certificates may not exceed the maximum legal interest rate, and the maximum maturity date for the debt would be August 15, 2047.

The Alamo Heights City Council is expected to consider an ordinance authorizing the issuance during a regular City Council meeting scheduled for Monday, July 13, 2026, at 5:30 p.m. at City Hall in Alamo Heights.

Certificates of obligation are commonly used by Texas municipalities to finance infrastructure projects without requiring voter approval, though public notice and transparency requirements must still be followed under state law.