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Council Hears FY26 Tentative Budget Update; $20.08M Bond Closing Scheduled
Summary
Finance staff told the council the city priced a $20,075,000 bond with a blended rate near 4.99% and expects to receive construction funds after closing; staff estimated first-year debt service of about $1.314 million and said final tax-rate impacts will be available after state certification.
City finance staff briefed the council on the tentative FY26 budget and a bond closing tied to the town-center project during Tuesday’s work session.
Staff reported the bond was priced at $20,075,000 with a reoffering premium of $290,000; the city will use roughly $13 million of proceeds to pay off a 2023 bond used to purchase project property and place the remainder into a construction fund for the town-center project. The blended interest rate discussed in the meeting was roughly 4.99 percent, reflecting a mix of taxable and tax-exempt portions.
Finance staff provided a preliminary estimate of first-year debt service at $1,314,009.55 and said the final certified rate and property-tax impacts will be available once the county/state calculations are complete; staff expected certified numbers to be ready in mid-June. Staff also described routine adjustments in the tentative budget, including a 2% cost-of-living increase and a 1% merit pool for civilian employees and step increases for sworn staff.
The council did not take final budget action in the work session; staff said a public hearing on the tentative budget will occur during the business meeting and that additional fund-level detail will be supplied when certified rates are available.
