Aberdeen City Council approves $20M sales tax bonds for new public works facility

The Aberdeen City Council convened on April 21, 2025, to discuss significant developments regarding the city's public works facility and the issuance of sales tax revenue bonds. The primary agenda item was the first reading of Ordinance 25 0 4 0 5, which authorizes the issuance of $20 million in sales tax revenue bonds, designated as Series 20 25 A.

City Manager Jordan provided an overview of the ordinance, highlighting that the funds will support the construction of an 86,000 square foot public works facility on Industrial Avenue. This project has been in planning for several years, gaining momentum after a space needs analysis conducted by HKG Architects in August 2023. The analysis involved a review of public works facilities across neighboring states to determine the necessary space requirements.

The estimated cost for the new facility ranges between $21.3 million and $26.4 million. The city council previously approved the purchase of land adjacent to city-owned property in the industrial park to facilitate this development. The new facility is intended to replace a complex of ten existing structures, some of which date back to the 1940s. The design phase is nearing completion, with a bid date anticipated for July 2025.

Jordan noted that the issuance of the Series 20 25 A bonds would increase the city's debt position from approximately 9% to 31% of total sales tax revenues in the special sales tax fund. This figure remains below the industry benchmark of 50%. The bonds will require annual principal payments ranging from $300,000 to $1.5 million, with an estimated interest rate of 5.75%. The final payment is expected by December 2044.

During the discussion, Councilman Ward moved to approve the ordinance, with Councilman Nordstrom seconding the motion. A question arose regarding the discrepancy between the proposed $20 million and an earlier figure of $17.8 million. Jordan clarified that the budget initially included an estimate of $18 million, but the city manager opted to increase the figure to $20 million to account for current market conditions.

The council's approval of the first reading of the ordinance is a crucial step in securing funding for the public works facility, ensuring that the project can proceed as planned. The meeting concluded with a consensus on the importance of moving forward with the necessary financial provisions to support the city's infrastructure development.