Board of Aldermen adopts ordinance engaging Piper Sandler as financial adviser for planned garage bonds

The Clayton Board of Aldermen adopted Ordinance 7055 on Jan. 28 approving a five‑year engagement agreement with Piper Sandler to serve as the city’s financial adviser and assist with a proposed special obligation bond issuance to renovate the municipal garage.

City Manager Gibson told the board the city expects to issue approximately $13,880,000 in special obligation bonds to fund the municipal garage renovation and that Piper Sandler’s proposed compensation for current services on the anticipated issuance is $60,000. Gibson described the firm’s role in preparing competitive bids, coordinating a bond‑rating call and helping the city present its finances to national rating agencies.

Board debate focused on financing approach and timing Several aldermen asked whether to use voter‑approved general obligation (GO) bonds — which are repaid with a dedicated property‑tax pledge and require voter authorization — rather than special obligation bonds, which are repaid from city revenue streams rather than a new property‑tax levy. Alderman Jeff (speaker identified as Jeff during discussion) and others said GO bonds can free operating revenue by placing debt service on a voter‑approved levy, while other members pointed to political timing concerns and recent local tax questions.

Vote and ordinance details Bill number: 7055 Subject: Engagement agreement with Piper Sandler as financial adviser for the city of Clayton, Missouri Term: Five years Planned bond issue: Special obligation bonds, anticipated principal $13,880,000 Fee for current issuance services: $60,000

The roll‑call adoption vote recorded: Alderman McAndrew — Aye; Alderman Buse — Aye; Alderman Patel — Aye; Alderman Fader — Aye; Alderman Hamill — Aye; Alderman York — No; Mayor Michelle Harris — Aye. The ordinance therefore passed with a majority vote.

Why it matters: Engaging a financial adviser is a standard step before significant bond issuance. Piper Sandler will advise on competitive sale strategy and the credit‑rating process; the chosen financing route (special obligation bonds) determines which city funds will be used for debt service and how the issuance interacts with other planned capital needs.

Implementation notes and next steps Staff said the bonds will be competitively bid in compliance with the city charter and that city staff and the financial adviser will manage the rating process. The ordinance authorizes the engagement; no bond sale occurred at the meeting. The finance department is the likely implementing department for next steps on the bond issuance and rating process.

Ending The ordinance was approved and aldermen continued the meeting’s business; board members asked for continued briefing and financial detail as the bond schedule is finalized.