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Bay Village staff favor short‑term borrowing to start fire‑station work, then roll into long‑term bonds
Summary
Bay Village finance staff told the committee on May 5 that KeyBank advised issuing short‑term debt to start the fire‑station renovation and later rolling that borrowing into long‑term bonds, citing a roughly 90‑day window required to complete a long‑term bond sale.
Bay Village finance staff told the Finance Committee on May 5 that KeyBank representatives recommended issuing short‑term debt to start the planned fire‑station renovation and then rolling that debt into long‑term borrowing after the final project cost is known.
"…our thoughts really were to issue short term debt, to get the project funded and rolling, and that would allow some time to also issue long term debt or, bonded debt," Jim said, summarizing a conversation with KeyBank staff. Jim said KeyBank representatives Mike Sharb and Dave Tiggett noted a roughly 90‑day window to complete a long‑term bond issuance, so short‑term borrowing would allow the village to begin work while the long‑term sale is prepared.
Why it matters: starting construction sooner with short‑term financing can keep the project schedule moving, but it requires council authorization and later bond‑sale decisions. Committee members suggested a pre‑market strategy meeting with KeyBank so village officials and the bank can align timing and market approach well before the potential fall borrowing.
Staff also flagged a near‑term bond anticipation‑note payment of about $1.3 million coming out of bond retirement funds and said they would coordinate with KeyBank on timing if additional short‑term borrowing is pursued.
No formal borrowing decision was made at the committee meeting; staff said they would engage KeyBank and return with formal options and timing for council consideration.
