Beaver City council adopts parameters resolution to allow up to $3 million in sales‑tax revenue bonds

Beaver City on Monday adopted a parameters resolution that authorizes city officers to issue up to $3,000,000 in sales‑tax revenue bonds to support a planned recreation project and refund outstanding excise tax bonds issued in 2019. The resolution (listed in staff materials as Resolution 12‑9‑2024 A) sets maximum parameters — an upper principal cap of $3,000,000, a maximum term up to 26 years and a maximum interest rate of 7.5 percent — while delegating authority to the mayor and city staff to negotiate final terms within those limits.

Jafeth McGee of Zions Bank, the city’s financial adviser for the transaction, told the council the 3‑million figure is a cap and that the actual sale will likely be smaller and structured “closer to 20 years” with an expected market rate nearer 5 percent. "Those parameters allow the mayor and Jason to go out and look for purchasers who will help fund the recreation project," McGee said. McGee also explained the resolution starts the 30‑day contest period required before closing and authorizes publication of a notice of public hearing.

Mayor (unnamed) and staff said the bonds will also be used to refund previously issued excise tax bonds from 2019, putting the instruments on the same parity and making future pledges and management easier under an indenture. Staff said the city’s sales‑tax bonding capacity is roughly $7.3 million, so the authorization preserves flexibility for future projects.

Council Member Randy Hunter moved to approve the resolution and Council Member Cox seconded. By roll call the council approved the measure; those voting yes were recorded on the record during the roll call. Council members identified a public hearing date in mid‑January (the council will hold its first meeting in January and the staff listed Jan. 13 as the hearing date) and staff noted the 30‑day contest period will follow publication of the notice. If enacted, staff said the bonds could be marketed after the contest period and closed by late summer, enabling the city to meet its project timing.

The resolution references bond counsel Gilmore & Bell; staff said the supplemental indenture and bond‑purchase agreement will be reviewed by counsel before final execution. Councilmembers asked staff for follow‑up documents; McGee said he expected market rates to be more favorable than the maximum included in the parameters. The council did not set a repayment schedule in the resolution beyond the maximums included in the parameters and directed staff to bring final terms back when available.