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Council approves bond sale for salt shed, authorizes up to $28M for fleet garage
Summary
Bloomington council awarded a $11.245 million general-obligation bond sale to fund a salt shed and authorized up to $28 million in tax-exempt bonds for a new public-works fleet garage, with council members saying the projects are long‑planned parts of the 2026 capital program.
The Bloomington City Council voted unanimously to accept the lowest bid on a general-obligation bond sale to fund a new salt shed and separately authorized the city to issue tax-exempt bonds of up to $28 million for a replacement fleet garage.
Laurie, the city’s CFO, told the council the Series 2025E bond sale drew 11 bidders; after applying premium proceeds the par amount to be issued is $11,245,000. “In this particular bond, the project cost needs $12,000,000, and it’s, again, for the land acquisition for the salt shed and for the building of the salt shed,” Laurie said during the presentation. UBS submitted the lowest bid with a true interest cost of 3.62 percent, Laurie said.
The council adopted a resolution awarding the sale and authorizing execution and delivery of the bonds by unanimous vote.
Separately, Laurie introduced a request to authorize issuance of tax-exempt general-obligation capital improvement bonds to fund a new public-works fleet garage. The project is listed in the capital-improvement plan at $25.9 million; staff asked a bonding ceiling of $28 million to allow contingency if bids are higher than expected. Laurie said the city would proceed through the usual timeline — a 30-day reverse referendum, a credit-rating call, and a bond sale early next year — if the council approved the authorization.
Council members asked staff to confirm how the salt-shed and garage parcels are sequenced on the ground. The CFO responded that the salt shed will be located on the newly acquired parcel on the east side and that the current salt-shed footprint and associated buildings will be removed so a new garage can be constructed across the combined parcels. After clarifying questions, the council voted 6–0 to authorize bond issuance for the garage.
City staff said property taxes will pay debt service on the salt-shed bonds and that premium proceeds reduced the net par issuance. Baker Tilly and QTech Rock were noted as participating advisors on the sale.
The council’s action allows the city to proceed toward final sale documents for the salt shed and to start the regulatory steps needed to sell bonds for the fleet garage in early 2026.
