Waco Approves New Financing Tool for Barron’s Branch Infrastructure
Published June 16, 2026
As the Waco Downtown Redevelopment Project continues to move from planning to construction, Waco City Council approved a financing tool designed to help deliver major public infrastructure improvements while reducing long-term borrowing costs.
At its June 16 meeting, City Council approved establishing a Certificate of Obligation Note Program to support infrastructure improvements within the Barron’s Branch District, the first phase of the Downtown Redevelopment Project.
The program will provide financing for public infrastructure projects such as parks, streets, drainage, water, and wastewater that are needed to support the transformation of the Barron’s Branch area.
A Different Approach to Financing Infrastructure
Large public projects are typically financed through traditional bonds, where the full amount is borrowed upfront and interest begins accruing immediately on the entire balance.
Instead of borrowing the full project cost at once, the Note Program establishes a line of credit that the City can draw from as construction expenses occur over the course of the project. The City pays interest only on the amount that has actually been used.
By matching borrowing to construction schedules, the City can reduce interest costs during the multi-year construction period and avoid paying interest on funds that have not yet been spent.
Barron’s Branch is a multi-year infrastructure project that includes major floodplain remediation, utility upgrades, street improvements, and the creation of a new public park and civic spaces.
Because construction will occur in phases over several years, City staff identified the Note Program as a financing option that better aligns with how project costs will actually be incurred.
“This project is about creating a world-class public space for Wacoans while being responsible stewards of public resources,” said Assistant City Manager and Chief Financial Officer Blu Kostelich. “By matching financing to the pace of construction, we're able to deliver the infrastructure needed for Barron’s Branch in a way that reduces costs and helps protect the City's long-term financial health.”
Under current market assumptions, the Direct Note Program is estimated to save approximately $23 million compared to traditional bond financing.
The approach also aligns repayment with future growth in the district. As new private investment occurs around Barron’s Branch, additional property value and tax revenue can help offset a portion of the Tax Increment Financing Zone’s debt obligations.
One important distinction is that these funds are restricted to public infrastructure improvements. The Note Program cannot be used to finance private buildings or private development projects. Instead, it is intended to fund the public improvements that create the foundation for future growth, including parks, streets, drainage, water, and wastewater infrastructure.
These investments help address long-standing infrastructure challenges while preparing downtown for Wacoans, future businesses, and visitors.
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