Fort Worth, Texas, expects to sell nearly $400 million of debt this year while officials consider asking voters in 2026 to authorize about $800 million of general obligation bonds.
Issuance plans, which were presented at a city council working session on Tuesday, call for $110 million of GO bonds, $17 million of tax notes, $13.6 million of tax and revenue certificates of obligation, $185 million of water and sewer system revenue bonds, and $65 million of special tax revenue bonds for the design phase of a convention center project.
A subsequent $541 million of special tax revenue debt would be issued in 2026 for the project's construction phase. The debt plan included an opportunity for a current refunding of Series 2017A special tax bonds to achieve a debt service savings of about 8.6%.
In addition, Fort Worth expects to sell $6.5 million of taxable certificates of obligation through the Texas Water Development Board's drinking water state revolving fund and obtain an estimated $252.57 million loan under the federal Water Infrastructure Finance and Innovation Act for a reclamation facility project. The size of the commercial paper program for the water and sewer system would increase to $700 million from $225 million.
The nation's 12th largest city is developing a bond program for the May 2026 ballot that would not require a property tax increase. Projects totaling $800 million were presented to the council.
"In addition to this initial list of proposed projects that city staff has offered based on the available funding constraints, we know residents have interest in numerous other projects," City Manager Jay Chapa said in a statement. "So besides the current recommended list, there is an additional menu of options that were just below the funding line that will be put forward for public comment. That list of projects totals $125 million."
Of the $560 million of GO bonds voters authorized in 2022, $204.2 million would remain to be issued after this year's $110 million bond sale. The city has GO ratings of AA from Fitch Ratings and S&P Global Ratings, AA-plus from Kroll Bond Rating Agency, and Aa3 from Moody's Ratings — all with stable outlooks.
About $1.5 billion of alternative minimum tax and non-AMT revenue bonds are anticipated to be issued in late summer and fall, while commercial paper will be utilized for interim financing, according to the airport.
