Augusta council approves $7.9 million bond sale, airport AWOS design contract and multiple city actions

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…