Aberdeen council approves ordinance to issue up to $20 million in sales-tax bonds for new public works facility

The City of Aberdeen City Council on April 21 approved Ordinance 25-0405 (first reading) authorizing the issuance of up to $20,000,000 in sales-tax revenue bonds, known as Series 2025A, to fund construction of a new public works facility.

City Finance Director Jordan walked the council through the ordinance, saying the bonds would fund an approximately 86,000-square-foot facility on Industrial Avenue on Aberdeen’s east side to replace a complex of 10 existing structures, the oldest dating to the 1940s. Jordan said the ordinance outlines annual principal payments ranging from about $300,000 to $1.5 million, interest estimated at about 5.75 percent and a final payment due on or before December 2044.

The measure matters because it commits sales-tax-backed debt to a multi-year construction project and raises the city’s debt in the special sales-tax fund from roughly 9 percent to about 31 percent of projected sales-tax revenues; staff noted that remains below an industry benchmark of 50 percent. City Manager Robin Bobzine and outside financial adviser Tom Grama of Colliers were on hand to answer council questions.

Council discussion centered on the size of the issuance, design choices and timing. Jordan and city staff said a $20 million authorization reflects a conservative planning number; earlier budget documents showed a lower placeholder figure at about $18 million but staff recommended the higher amount to avoid underfunding. On design, consultants and staff said the building footprint has…