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Olive Branch authorizes municipal adviser, signals intent to issue up to $10 million in GO bonds
Summary
The board approved hiring an independent municipal adviser and adopted a resolution declaring the city's intent to issue general obligation bonds of up to $10 million to fund capital projects, starting the public notice process.
The Olive Branch Board of Aldermen voted to employ an independent registered municipal adviser and adopted a resolution declaring the city’s intent to issue general obligation bonds in an aggregate principal amount not to exceed $10,000,000 for various capital projects.
City staff said the actions are preliminary steps in the bond issuance process. Hiring a municipal adviser is required if the city issues bonds through the Mississippi Development Bank; staff said the adviser will also help structure and size any issue to secure favorable terms.
City staff (Mr. Dye) told the board the resolution is the first formal step that triggers publication of notice to bidders and other procedural requirements; any actual bond sale would return to the board for further approvals. The memo in the board packet from Mr. May analyzing the opportunity and debt capacity was referenced during the presentation.
Alderman Collins moved to approve employment of the municipal adviser; Alderman Hamilton seconded. Later, Alderman Dixon moved approval of the resolution declaring the city’s intent to issue bonding; Alderman Collins seconded. Both actions passed on unanimous voice votes.
Staff and the city’s financial advisers noted that the bond plan is part of the upcoming budget-cycle considerations, including setting millage rate and assessing remaining debt capacity. The board did not set a sale date and stressed that subsequent steps (advertisement, bid process and final board approvals) are required before bonds are issued.
