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Council authorizes up to $21M in limited obligation bonds and creates capital reserve funds
Summary
Council approved limited obligation bond resolutions (direct placement to Webster Bank) not to exceed $21 million at a capped true interest cost and adopted eight budget amendments creating capital reserve funds, including transferring $8 million into a new water supply capital reserve.
Finance Director Robert McKay presented two resolutions authorizing the town to issue limited obligation bonds through 2025 in a direct placement to Webster Bank for a combined amount not to exceed $21,000,000 with a true interest cost not greater than 5 percent. The borrowing would fund a range of capital priorities identified on the meeting presentation, including Fire Station 1 renovations, library renovation, property acquisitions for town operations and downtown investments.
McKay outlined that the Local Government Commission (LGC) would consider the financing on Dec. 2 and the town anticipated closing with Webster Bank on Dec. 11. He described a 20‑year level principal structure with competitive interest terms locked several months earlier.
Council also approved a suite of eight budget amendments and capital project ordinances to create program initiative capital reserve funds for the general fund, water & sewer and electric funds; staff transferred unspent FY2024 appropriations into dedicated reserve funds to permit more granular tracking. Separately, the council approved creating a distinct water supply capital reserve and transferring $8,000,000 into that fund, which had been held previously in a different reserve pending capacity availability.
The council voted to adopt the bond resolutions and the bundle of ordinances by voice vote.
