Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Bonds topic
No spam. Unsubscribe anytime.
Oak Grove approves $14.12 million bonds to finance fire station and city hall
Summary
The council voted 5-0 on June 9 to authorize sale of general obligation capital improvement bonds (Series 2025A) to fund a combined fire station and city hall project; officials and the city's financial advisor presented projected levy impact and a timeline for sale and receipt of proceeds.
On June 9, the Oak Grove City Council authorized Resolution 2025-0582 to sell general obligation capital improvement bonds (Series 2025A) that city staff and bond advisers said will finance construction of a new fire station and city hall.
Jake (Baker Tilly) told the council the bonds' total par amount is $14,120,000, with roughly $14,000,000 budgeted for construction. The financing structure presented calls for a 30-year term with principal payments beginning Feb. 1, 2026, and final principal payment Feb. 1, 2055, and semiannual interest payments on Feb. 1 and Aug. 1.
Jake and his colleague Ryan (Baker Tilly) described the expected levy and taxpayer impact. The presentation estimated an average annual levy of about $935,000 under a 105% levy practice (levying 105% of debt service as required by statute for planning). Baker Tilly staff gave sample effects on property owners: adding the new levy would increase annual property-tax bills in the examples shown by about $121 for a $250,000 home, about $268 for a $500,000 home and roughly $604 for a $1 million property. They also said the incremental impact compared with the levy already adopted last year (about $896,000) would be smaller: roughly $5 more for a $250,000 home, $12 for a $500,000 home and $25 for a $1 million home.
Jake told the council that final pricing will be determined at the competitive sale planned for July 14; he said proceeds would be received in mid-August and construction could begin after receipt. "These numbers are preliminary," he said, adding that the July sale will produce the final interest rates and exact debt-service schedule.
During public comment resident Bridal Kerufele raised a procedural question about a petition threshold in the resolution that would require an election if a valid petition signed by a number of registered voters equal to 5% of votes cast were filed within 30 days. The city attorney said he would follow up and confirm how the 5% threshold is calculated against statewide voter-registration records.
After hearing the presentation and public comment, the council voted to approve Resolution 2025-0582. Motion: Council Member West; second: Council Member Bray Johnson. Vote: unanimous, 5-0.
Ending: City staff and bond counsel will return after the July sale with final pricing and a confirmed repayment schedule; the council closed the public hearing and awarded the sale at a later meeting after pricing, per the schedule presented.
