Rising interest rates impacted certificates of obligation sold by the city of Mineola last Tuesday to finance a utility improvement project.

The $4 million bonds drew an average interest rate of 3.67% over the 20-year life of the bonds, which will require about $295,000 per year for the city to repay.

Average interest rates nationally on A-rated bonds have risen from 2.12% at the first of the year to 3.27% the first of May.

The city spent $14,178 on bond insurance to help improve the city’s rating and saved about $100,000, according to John Martin with Hilltop Securities.

The bonds will help pay for state-required improvements to the city sewer plant.

They will be repaid by water and sewer revenues, which will not impact property tax payers, Martin said.

The total improvement project of $7.7 million is scheduled to take about a year.

The council also approved Hayter Engineering to provide engineering services for the planned walking-biking trail along the old rail line from near the city animal shelter to Loop 564.

The firm submitted the only proposal and has previously worked on the project.

The city has received a Texas Parks and Wildlife grant for $200,000 to assist with the project and will add a $145,500 match, much of which will include in-kind labor and materials and donations.

The May 7 election results were certified which showed Sue Jones reelected to her Ward One seat for two years. No other seats were contested.