Alvin prices $32.5m water and sewer bond financing below 5%
City of Alvin, Texas · Meeting date: October 15, 2026 · Published: October 16, 2026
Alvin’s proposed Series 2026 water and sewer revenue bonds would fund expansion of Lift Station 23 and the wastewater treatment plant. The competitive sale drew five bids from across the US, with Robert W. Baird offering the lowest true interest cost.
Key points
- Council voted on Ordinance 26-X, authorizing $32.235 million in Water and Sewer System Revenue Bonds, Series 2026.
- The city would receive $32.5 million in proceeds for Lift Station 23 and wastewater-treatment-plant expansion, according to its financial advisor.
- Robert W. Baird submitted the best of five bids at a 4.70627% true interest cost; the two lowest bids were separated by just over two basis points.
- The winning underwriter elected to obtain Assured Guaranty bond insurance, providing an AA rating for secondary-market trading.
Full report
Alvin City Council voted on an ordinance to issue water and sewer revenue bonds for expansion of Lift Station 23 and the city’s wastewater treatment plant, with the proposed $32.5 million financing priced at a true interest cost below 5% following a competitive sale.
The ordinance before the council authorized issuance of $32.235 million of City of Alvin Water and Sewer System Revenue Bonds, Series 2026. The city’s financial advisor, James Gilley of U.S. Capital Advisors, said the lower par amount reflected the winning bidder’s premium offer. Subject to the ordinance passing and closing, Alvin would receive the full $32.5 million for the projects, he said.
The bonds were competitively bid at 10am on October 15, attracting five bids from firms in Wisconsin, New York, Texas, North Carolina and Tennessee. Robert W. Baird, based in Milwaukee, submitted the best bid at a 4.70627% true interest cost. The two lowest bids were separated by slightly more than two basis points.
Gilley said the participation level indicated that the city had obtained a good price, despite recent market volatility and economic uncertainty. He noted that, at the end of September, the expected cost had been slightly above 5%. Bond yields had declined by around 25 basis points over the preceding seven days, including declines of about 15 basis points on most maturities on the day of sale, he said.
Robert W. Baird chose to purchase bond insurance from Assured Guaranty. According to Gilley, the insurance gives the bonds an AA rating when traded in the secondary market.
The adviser also said Baird had been the successful bidder in five of Alvin’s seven water and sewer revenue-bond sales since 2018. The council motion specified the $32.235 million issuance amount and related agreements, official-statement preparation and other provisions of Ordinance 26-X.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Meeting, City of Alvin