Warren council authorizes notice of intent to reimburse capital improvement projects with bonds

Warren City Council on Oct. 28 adopted a resolution authorizing the city to begin the statutory notice period for proposed capital improvement bonds and to declare the city’s intent to reimburse prior capital expenditures.

City controller Richard Fox told council the resolution opens a 45‑day referendum (petition) period under the Revised Municipal Finance Act and signals the city’s plan to sell limited‑tax general obligation bonds likely in late January or early February, pending market conditions and the outcome of the referendum period. Bond counsel explained the sale would be competitive and recommended investors contact brokers for retail purchases.

City and bond advisers noted preliminary market assumptions: an estimated interest rate (if sold that day) around 3.88% and a target 20‑year amortization. Staff said the bonds would be limited‑tax G.O. bonds repaid from existing taxing authority and would not raise tax rates. A preliminary estimated annual debt service, if sold at the illustrative rate, was presented as roughly $1.5 million per year.

Council approved the resolution on a unanimous roll call. The resolution itemized projects eligible for reimbursement and clarified that some projects already have engineering underway and contractors will be paid prior to the bond sale, so reimbursement authority is needed.

What residents should know: the resolution starts the legal notice/referral period; if a sufficient petition is filed within 45 days, the bonding could be delayed or placed on a ballot. If no petition is filed, staff will proceed with rating, marketing, and a competitive sale process before finalizing bond terms.

Key quote: Richard Fox, city controller: “So tonight, what we're doing is we have a resolution to authorize intent to sell the bond. So we'll have a 45 day referendum period, and also intent to reimburse.”