ODESSA, Texas — During an Odessa City Council work session Tuesday, councilmembers voted 6-1 in favor of using a certificate of obligation bond to pay for a renovation of the city's water treatment facility.
This coming after an initial vote from city council yielded a vote in favor of certificates of obligation by a vote of 4-3. Councilman Mark Matta and councilwoman Denise Swanner initially voted against it along with Mayor Joven.
Joven was the only member to vote against it the second time. However, it was not because he doesn't believe the facility shouldn't be upgraded. It has more to do with the cost.
"The cost it’s always going to be the cost that’s important to me," Joven said.
Swanner and Matta changed course at the most recent meeting.
"Now we all know that water is a need in this community. Not only do we want drinking water, but we also want to grow our community and everybody knows I am not big on issuing debt. I do think the taxpayers should have a say on where their money is spent, but I also believe that this particular C.O. is designed for things like this or was created for a water treatment plant," Swanner said.
Matta said that the city needs to act on the water facility now.
"We have little to no options left. I will probably vote for this C.O. because we are at the point where this has become an emergency. However, rest assured I will do all I can to make sure this debt is payed expeditiously in order to reduce some of the interest incurred from this debt," Matta said.
The bond, which is set not to exceed $95 million, will now be submitted to rating agencies.
Several important dates are projected to follow that submission. Ratings are expected to be returned by Aug. 27, followed by a preliminary statement around Aug. 31 and a receipt of funds by the beginning of October.
Bonds on the 20-year debt will be sold at premium and will be paid back using water and sewer revenue.