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Hamilton Township trustees authorize up to $5.5 million bond for new public works facility
Summary
Trustees approved a bond authorization not to exceed $5.5 million to build a consolidated 22,000± sq ft public works facility, citing decades-old scattered storage, rising construction costs, and roughly $2.55 million in township cash to reduce borrowing.
Hamilton Township trustees voted to authorize issuance of general obligation bonds not to exceed $5,500,000 to fund construction, equipping and site work for a consolidated public works facility.
Administrator Jeff Wright told trustees the township has long operated public-works functions out of multiple aging buildings and needs a single 22,000± square-foot facility to better protect equipment and streamline operations. Wright said the township has saved "over $2,000,000 cash in hand" and an additional "approximately ... $550,000" in reserves and plans to use those funds to reduce the amount it must borrow.
Wright outlined the financing approach: the township will issue 25-year general obligation municipal bonds, work with in-house counsel and municipal advisors ("Bradley Payne advisors"), and has identified a bond underwriter. He said the township expects interest rates near 5.5 percent and will have a phone conference with Moody's for an updated rating. Wright added that staff will provide the federal arbitrage opinion and compliance calculations required for tax-exempt debt.
Trustees asked about the mechanics of receiving and investing bond proceeds, arbitrage limitations and how unused contingency would be applied. Wright said the bonds are being written so there is "no penalty for early payment," and any excess proceeds or contingency savings could be applied to principal or returned to the township per the bonds' terms.
After discussion, the board approved Resolution 25-0604C authorizing the bonds. The motion carried on a voice vote with 'Yes' votes recorded for Mister Cordray, Mister Sousa and Mister Razi. The board also approved a related post-issuance compliance policy (Resolution 25-0604D) to document annual compliance and tax reporting obligations for the life of the bonds.
Next steps: Wright said staff expects final settlement and wired funds by July 29 so monthly payments to the contractor can begin. The township will proceed with underwriting, rating review and formal issuance steps required for tax-preferred municipal debt.
