The City Council of the City Nassau Bay will meet at City Hall on March 9th, 2015 to authorize the issuance of $1.6 million in certificates of obligation.
From the legal notice posted on Your Houston News:
“NOTICE OF INTENTION TO ISSUE CERTIFICATES
NOTICE IS HEREBY GIVEN that the City Council of the City of Nassau Bay, Texas (the “City”) will meet at its regular meeting place at City Hall, Nassau Bay, Texas at 7 p.m. on the 9th day of March, 2015, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City’s certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $10,000) subordinate pledge of certain revenues of the water and sewer system of the City, in the maximum aggregate principal amount of $1,600,000, bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof…”
Local Government Code Chapter 271, section 271.047 gives purchasing and contracting authority to issue this type of debt obligation without obtaining voter approval.
Sec. 271.047 – AUTHORIZATION OF CERTIFICATES BY ORDINANCE OR ORDER, OTHER PROVISIONS IN CERTIFICATES.
(a) Certificates may be authorized by an ordinance adopted by the governing body of a municipality, or by an order adopted by the governing body of a county after compliance with the quorum requirements prescribed by section 81.006.
Read the rest here.