City Council To Consider $15.23 Million Bond Issue Wednesday
With identified infrastructure needs in excess of $25 million, the city council is expected to consider a bond issuance of $15.23 million at Wednesday’s meeting. According to a city memo, a combination of bond proceeds, grants and accumulated cash to meet the financial requirements of the overall capital improvement plan.
The bond approval does not require voter referendum, only a simple majority vote of the council.
“We are now underway with the construction of the four main sewer projects identified and committed to as part of the Save the Sound Stipulated Order and expect other construction projects to begin shortly,” said the memo from City Manager Greg Usry and Deputy Comptroller Joe Fazzino. “This activity, combined with rising interest rates, causes us to recommend that the Council authorize the issuance of $13.55 million of bonds.”
The remaining $1.68 million of bonds (to reach the full $15.23 million) is related to a 2012 voter referendum. The bonds were approved but never issued at that time.
Once approved, the city expects to be able to close on bonds within 30-45 days. The bond will amortize over 30 years with the resulting annual debt service of approximately $650,000.
