Finance committee recommends debt financing for $10.8M Sandusky recreation center

The Sandusky Finance Committee on Dec. 5 recommended that the City Commission authorize debt financing for a new recreation center after staff said bids were received and a contract was awarded.

Michelle, a city finance presenter, told the committee the winning construction bid was awarded to Janata and Herner and that the total project cost is $10,800,000. Staff said the city plans to finance $9,000,000 of that amount and use existing cash reserves and other revenues for the remainder.

Michelle said the 2021 Cedar Point partnership commits $700,000 annually for 20 years toward the rec‑center project. "As long as our interest rate is under 4.5%, that 700,000 will be enough to cover the debt payment on a rec center," she said. She added that current market expectations put the likely interest rate around 4% when the city issues debt.

City staff walked the committee through state and internal debt‑limit calculations. According to the presentation, total outstanding debt including the proposed $9,000,000 would be about $31,000,000; staff noted that debt backed by tax revenues for the facility is treated separately for direct debt limitations. Slides presented showed remaining capacity under both unvoted and voted direct‑debt limits, and staff said the city would remain within statutory constraints if the financing proceeds as proposed.

A committee motion to recommend the financing to the City Commission carried on a roll call with a single abstention. Committee members did not set final financing terms; the City Commission will consider authorization at a future meeting in January.

What happens next: the City Commission must formally authorize the issuance of debt and set final terms. Staff said it expects to return with financing documents and recommended action in January.