Altus authority authorizes $10 million use-tax note to fund Missile Park

The Altus Municipal Authority voted to issue a use-tax revenue note in the aggregate principal amount of $10,000,000 to finance the Missile Park project, waiving competitive bidding and authorizing negotiated sale of the note.

City Attorney Paul Magna, speaking for staff, said the Authority will pledge certain use-tax revenues as collateral and rely on other revenue streams and, if necessary, emergency fund dollars to make the monthly payments. "This is for the funding for the, Missile Park project," Magna said during the Authority's discussion.

The resolution approved execution of a use tax agreement between the Authority and the City of Altus, authorized related indenture documents and declared the organizational documents of the Authority subject to those provisions. The action also designated the note as a qualified tax-exempt obligation.

Council later approved a companion city resolution adopting substantially the same terms, authorizing the city's incurrence of indebtedness and waiving competitive bidding for the sale of the note. City staff said bond counsel was present to answer questions but provided no competing proposals during the meeting.

Council members and trustees voted to approve the Authority and city items in separate motions; each motion passed as presented. Staff noted that in months when pledged use-tax receipts are insufficient, the city could temporarily use emergency funds and later replenish them as revenues permit.

Next steps include completing sale documentation and closing the note transaction per the approved indenture and use-tax agreement. The council did not set a specific closing date during the meeting.