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North Canton sells nearly $15 million in bonds for new fire station; S&P revises outlook to positive
Summary
Finance staff told council the city sold $15 million in bonds for the fire station project, with nearly all bonds purchased and proceeds expected Aug. 28. S&P Global maintained a double‑A minus rating but revised the outlook from stable to positive. Council adopted appropriation language tied to those proceeds.
City finance staff reported that North Canton sold its bonds to fund the new fire station and related capital work and that the City’s credit outlook improved in a recent rating review.
Finance briefed council that the architects’ revised project budget was reported in committee at about $14,000,750 (approximate as stated in the meeting). Council had previously authorized up to $16,000,000 for the bond issuance; staff elected to take $15,000,000 to market and sold all but approximately $70,000. Proceeds were scheduled to be received on Aug. 28, and staff said the unsold short piece would be purchased by the underwriter if necessary.
Finance also described an S&P Global rating review: the city’s rating remained at double‑A minus, and S&P revised the outlook from stable to positive, citing the approved income tax rate increase, reserve growth, adoption of capital improvement planning (CIP) and stronger policies and practices. Staff reported robust investor interest and noted that a portion of the bonds (about $985,000) was purchased by local retail investors.
Council adopted under suspension of rules the appropriation ordinance that includes the expected bond proceeds and transfers for compensated absences and other one‑time needs; staff said any unused bond proceeds will pay down debt or be used per the project plan.
Ending: With net proceeds expected in late August, staff will move forward with project procurement and return with implementation details and any required budget adjustments as construction planning progresses.
