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Officials discuss 30-year bond and other options to finance Garden City RV Park estimate of $6.5M
Summary
City manager and treasurer presented a revised conceptual estimate of about $6.5 million for the Garden City RV Park and reviewed financing options including Wells Fargo short-term credit, Alaska Municipal Bond Bank financing, and a potential 30-year general-obligation bond; staff will work with bond counsel and bring ordinances back to the assembly.
City Manager Dietz and Treasurer Rodig presented updated financing options for the Garden City RV Park, citing a conceptual cost estimate of about $6.5 million and a range of funding scenarios.
Treasurer Rodig told the committee she had consulted bankers (Coleman Capital, Wells Fargo) and the Alaska Municipal Bond Bank to prepare the packet's financing comparison and said Wells Fargo is not positioned to provide long-term financing; it could offer a short-term line of credit that would later be refinanced by a bond sale but would add roughly $439,000 in interest payments relative to a direct bond.
Members discussed general-obligation (GO) bond constraints after bond counsel advised that only project costs for assets the municipality will own at the end of the project are typically bondable; staff and the committee agreed to refine project accounting in an ordinance to clarify what costs are included. Assembly member Dan Henry advocated for a 30-year bond to reduce annual debt service and preserve cash for other needs.
Dietz said staff will work with bond counsel to prepare an ordinance and aims to proceed on a timeline that would allow a second vote in July to place the bond question on the ballot if the assembly chooses to pursue that route.
