Council approves bond authorization to fund North Platte Recreation Center and Cody Pool upgrades

The North Platte City Council on April 1 approved Ordinance No. 4201 authorizing the issuance of municipal improvement bonds in an amount not to exceed $42,100,000 to finance expansion and renovation of the North Platte Recreation Center and Cody Pool. The council also waived the city’s three-reading rule so the bond authorization could move forward immediately.

The ordinance approves bond issuance in one or more series, prescribes bond form and repayment structure, and includes a pledge of 1.5% of the city’s sales tax as additional security to improve the city’s market credit and secure favorable interest rates. "We serve as the city's municipal advisor," said Austin Partridge of Northland Securities, who explained the timing and financing strategy to the council. Partridge said the plan is to issue multiple tranches to manage interest-rate risk and to take advantage of bank-qualified status on smaller issuances.

The council’s action follows an earlier series of steps that included issuing a first series of $9.9 million last year to begin construction. Partridge said the remaining authorization in Ordinance No. 4201 reflects the city’s total voter-approved project cap of $52,000,000 minus past issuance. He described the additional 1% sales-tax pledge as a marketing step for the sale of bonds, while the half-percent sales tax already approved remains the primary source of debt service. "If the existing half a percent sales tax revenue does not generate enough to cover your debt service payments on your bonds, then the city could... dip into that other 1% to repay the bonds," Partridge said when asked by Councilmember Lucas.

Partridge described an approximate timeline: staff will prepare the preliminary official statement and other documents; the city hopes to be in the market within two to three weeks depending on market conditions and to close so the city receives funds in early May. He estimated preliminary interest rates in the range of about 4.15% to 4.35%, noting market volatility and pending national developments could change those numbers. The bonds are being structured as 20-year debt; Partridge said preliminary estimates show the bonds could be paid off earlier — perhaps in 15 to 16 years — if sales-tax revenues exceed debt service requirements.

Councilmember Garrick moved to adopt Ordinance No. 4201 on first reading; Councilmember Volz seconded. The council then voted to waive the three required readings (motion carried) and adopted the ordinance in a single reading. The motions were passed without a roll-call tally recorded in the minutes.

The city will use the pledged sales-tax revenues and standard municipal bond processes (preliminary official statement, bond sale, and closing) to complete the financing; final interest rates and total debt-service costs will be known only after the bond sale is held and rates are locked.

The action positions the city to continue construction work already started with the earlier $9.9 million series and to complete the Recreation Center and Cody Pool projects as funded by voter authorization and the bond program.