The Augusta City Council on Oct. 20 accepted the low bid for a $7,885,000 general-obligation bond issue to fund a new public works complex and water projects, approved a $74,100 consultant agreement to design and bid a relocated automated weather observing system (AWOS) at Augusta Municipal Airport and authorized a real-estate purchase contract for downtown property for future municipal facilities.
The bond sale drew the most discussion. Kevin Callan, bond counsel, said four bids were opened and the apparent winning bid was from Northland Securities and that the transaction produced a “true interest cost” of 3.89 percent. “Compared to where we were a month ago … the results are fantastic,” Callan said. City staff said the lower-than-expected rates reduced modeled annual debt payments and improved the city’s ability to deliver on a previously stated goal of keeping the mill levy neutral for the program.
Why it matters: the bond proceeds will fund a new public works facility and substitute for previously planned water revolving loans. City staff said the improved interest rate reduces long-term interest costs by more than $1.3 million compared with earlier estimates and lowers modeled average annual debt service from roughly $560,000–$570,000 to about $510,000.
In other action, the council approved a consultant agreement with Olsen Inc. for design and bidding work to relocate and replace the AWOS. City staff said the overall AWOS project is currently estimated at about $450,000 and will be funded largely by the Federal Aviation Administration; staff indicated a roughly 95%–5% FAA/city split and said the city’s share of remaining costs is about $22,500. Brian Coombs of Olsen answered technical questions at the meeting and confirmed the plan is to install a new system rather than move the existing unit.
The council also authorized a real estate purchase contract to acquire Lots 3, 4 and 5, Block 25 (generally 609 N. School St.) to preserve an option for future municipal facilities. Staff said the city has budgeted money in the CIP for land acquisition and that a tenant currently on the property has a short-term lease running into mid‑2026. The city attorney noted closing costs will be split 50–50 between buyer and seller; the council authorized the mayor to sign the contract.
Other votes included a nuisance‑abatement resolution ordering removal of a camper at 664 N. Santa Fe (10 days to remove before abatement); a conditional‑use permit to place a construction administration trailer at 1301 N. Ohio (planning commission approved it 4–0; council attached front‑setback and street‑side setback conditions); declaration of found bicycles as surplus with a shortened three‑month holding period before disposition; appointment of the city’s Kansas Power Pool voting delegate (Tim Johnson) and alternate (Mark Kane); and appointments to two ad hoc review committees for special alcohol grants and utility abatement applications.
Council actions were primarily routine votes and roll calls; most controversial items involved operational details rather than policy shifts. Planning staff noted only one resident contacted the planning office about the construction trailer request and that person withdrew opposition after receiving details.
Votes at a glance
- Bid award (accept low bid from Northland Securities) — motion approved (voice vote). True interest cost: 3.89% for $7,885,000; closing scheduled Nov. 6, 2025. (Mover/second: not specified in transcript.)
- Ordinance No. 2251 — authorizing sale and issuance of General Obligation Bond Series 2025 — adopted (roll call: Burke Yes; Bailey Yes; Richardson Yes; Davis Yes; Brown Yes).
- Resolution No. 2025‑25 — prescribing form and details of General Obligation Bond Series 2025 — adopted (voice vote).
- Resolution No. 2025‑26 — nuisance abatement, 664 N. Santa Fe — adopted (voice vote). Code cited in staff presentation: KSA 12‑16‑17(e).
- Olsen Inc. consultant agreement — AWOS design & bidding, $74,100 — approved (motion; voice vote). City’s estimated share of project remainder: $22,500.
- Ordinance No. 2252 — conditional use permit for construction administration trailer, 1301 N. Ohio — adopted with conditions: minimum front setback 30 ft; minimum street‑side setback 15 ft. (Planning commission vote 4–0; council roll call: Burke Yes; Bailey Yes; Richardson Yes; Davis Yes; Brown Yes.)
- Real estate purchase contract — Lots 3, 4 & 5, Block 25 (609 N. School St.) — council authorized mayor to sign the contract. Closing costs will be split 50/50 per attorney guidance.
- Surplus declaration — found bicycles; authorize disposal every three months — adopted (voice vote).
- Kansas Power Pool voting delegate — Tim Johnson (voting delegate); Mark Kane (alternate) — appointed (voice vote).
- Ad hoc committees — Special alcohol grants: Sean Davis, Eric Burke, Bob Bailey; Utility abatement: Jeff Brown, Kip Richardson, Jake Kumar — appointed (voice vote).
What officials said
- Kevin Callan, bond counsel: “The apparent winning bid is from Northland Securities … the results of the sale today are 3.89%.”
- Josh, City Manager: “We actually started planning for this issuance years ago …” (summarizing the long‑range budget work and mill‑levy modeling.)
- Tanner Thomas, Code Enforcement Officer, on the nuisance item: “This is a nuisance camper at 664 North Santa Fe.”
- Brian Coombs, Olsen Inc.: answered technical questions and confirmed the intent to install a new AWOS system.
Staff and next steps
- Bond closing is scheduled for Nov. 6, after which bond proceeds will be available for the public works facility and related water projects. Staff said the lower interest cost improves projected debt service and helps preserve the city’s plan to keep the bond program mill‑levy neutral.
- Olson (Olsen) will proceed with design and bidding for the AWOS relocation; further contract or construction approvals will follow.
- Staff will execute the approved real‑estate purchase contract and manage the existing tenant until lease expiration.
The council adjourned after routine miscellaneous updates, including a staff report that city staff plan a temporary, limited food‑truck pilot on State Street before considering any formal permitting program.