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Sedalia council authorizes up to $18.5 million in certificates of participation; approves $13.94M guaranteed maximum price for construction
Summary
The Sedalia City Council voted to authorize tax-exempt certificates of participation to fund a new central fire station, a fire training facility and a bowling alley, and approved a construction manager amendment establishing a guaranteed maximum price of $13,942,276 for the build scope.
The Sedalia City Council on Sept. (2025) approved issuing up to $18,500,000 in tax-exempt certificates of participation to finance a new central fire station, a fire training facility and a bowling alley, and approved an amendment to the construction-manager-at-risk contract that sets a guaranteed maximum price (GMP) of $13,942,276 for the construction scope.
The financing measure, enacted by ordinance (bill 2025-161), was discussed in a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing because part of the bowling-alley debt service will be paid with funds from a 501(c)(3) gift agreement the council previously approved. "The public hearing in front of you tonight is actually specifically it's called a TEFRA hearing," said Megan Miller, the city's bond attorney with Gilmore & Bell, explaining the federal requirement for a hearing when tax-exempt bonds include a 501(c)(3) component.
City staff told the council the certificates would be used to raise funds for the projects and that the ordinance authorizes financing of up to $18.5 million, with final payoff no later than 2045 and an option to prepay beginning in 2036. Separately, staff presented amendment number 1 to the construction-manager-at-risk agreement that establishes the GMP for the listed construction work at $13,942,276; staff said that GMP excludes design services, testing, furnishings, fixtures, equipment and other soft costs.
Miller explained that the TEFRA hearing was limited to the components paid in part by the 501(c)(3) gift — the bowling alley — and that the fire station and training facility portions are financed with public funds and discussed separately in the ordinance process. The council adopted the ordinance authorizing issuance of the certificates and then approved the contract amendment that sets the GMP so construction may proceed.
The council approved both measures by roll call votes. For the certificate ordinance (bill 2025-161) the roll call recorded seven yes votes; one member, Scribner, was absent. For the construction contract amendment (bill 2025-162) the council also recorded seven yes votes and one absence.
The GMP applies to the construction items described in the contract documents; staff emphasized the amount does not reflect the project’s total cost because it excludes soft costs and other contingencies. City officials were authorized to execute the lease, financing and construction documents required to proceed.
Council members did not request further changes as the two measures were taken up in succession; the TEFRA hearing and bond ordinance satisfied the federal notice requirement for the 501(c)(3)-funded piece of the bowling alley.
The council’s actions allow the city to complete financing and move forward with guaranteed-price construction under the amended contract; staff said additional budget and procurement steps will follow as the projects advance.
