The Spring Hill City Council voted to approve the long-term financing package for several public-works projects, adopting an ordinance authorizing $3,550,000 in general obligation bonds and resolutions authorizing delivery of those bonds and $28,330,000 in general obligation temporary notes.

City staff said Robert W. Baird received the winning bid for the $3.55 million bond issue at 5.32 percent; staff and the finance adviser described the sales as competitive and said the taxable bonds have a tax-exempt equivalent yield near historic city borrowing levels. The council approved Ordinance 2025-08, and the clerk recorded the final vote as “Ordinance 2025-08 passes six-zero-zero.”

The temporary notes (series 2025B) — authorized by Resolution 2025-R-15 — were sold with a roughly two-year maturity and drew four bids; the winning interest rate reported to the council was 3.78 percent. Staff said the temporary notes cover four project groups and will be taken out by permanent financing within two years as projects and reimbursements finalize. The council adopted Resolution 2025-R-15 by a 5-0-0 vote.

Why it matters: the bonds and notes will fund a mix of projects the city described as internal improvements, including the permanent financing of Webster Street construction and a substantial portion of sanitary sewer work. Staff told the council the temporary-notes package includes 190 Ninth and 190 First Street improvements, the Fox Hall special benefit district and major sewer work.

Details and funding mechanics: staff explained temporary financing proceeds will be held in the city’s investment account and draws coordinated with project schedules to maximize interest earnings; staff said the city’s InterFi account yields around 4 percent and noted the city has already earned roughly $46,000 in interest this year on city cash. For the sewer easement purchases tied to the projects, staff said the city can temporarily use sewer-fund cash and later reimburse the fund with bond proceeds if necessary.

Council members asked about access, rating and the structure of the issues. Staff said the rating for the bonds reflected stable operating results and a forecasted capital improvement program; they noted about 88 percent of the city’s outstanding debt principal will be paid within 10 years. Council discussion repeatedly emphasized that some of this financing is tied to special benefit districts and rural housing incentive districts and will be levied on properties that directly benefit from the work.

What remains: staff told the council the temporary notes are intended to be converted to permanent bonds when projects and reimbursements are certain. No further council action on the sales was required after the recorded votes.