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Municipal adviser briefs McAlester council on sales-tax, ad valorem and long-term debt options
Summary
A municipal financial adviser told the McAlester City Council the city faces major infrastructure costs and outlined how sales tax, ad valorem levies and borrowing interact with existing bond schedules and reserves.
A municipal financial adviser told the McAlester City Council that the city faces a choice among sales-tax increases, ad valorem (property) levies and borrowing to meet large infrastructure needs and to manage debt that extends into the early 2030s.
The adviser said ad valorem financing differs from sales tax because “The only condition on the ad valorem is that we have to buy something. We have to, we have to own something,” and contrasted that with sales tax, which is percentage-driven. He also warned that some older bonds are noncallable and will remain on the city’s books through 2034.
Why it matters: Council members pressed the city for options after describing street, water and sewer needs that could total many millions. The adviser presented sample costs and financing programs and…
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