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City staff propose using land‑sale proceeds to pay off notes and move multiple 2026 supplemental transfers
Summary
City finance staff recommended using recent Stone Corey Crossings sale proceeds and fund balances to retire land acquisition and bond anticipation notes, which would lower interest costs; staff also presented a package of supplemental transfers for job creation, facilities reserves, capital improvements and specific project increases to be considered as an emergency ordinance.
City finance staff asked the Vandalia City Council on May 4 to consider early payoff of two categories of city debt and a set of supplemental appropriations tied to that approach.
Miss Lighter and Mr. Alouse summarized balances and proposed repayment sources. They said the remaining principal on the Stone Corey Crossings land acquisition note is about $1,272,000; proceeds from the recent sale of a parcel (about $1.26 million) would nearly offset that balance, with the general obligation fund absorbing any small shortfall. Separately, the bond anticipation notes for fire apparatus carry a principal balance of roughly $865,000; staff proposed using the Safe & Stable fund (revenue from the city income tax stream assigned to public safety funds) to retire the ladder truck note now rather than in a later budget year.
Staff argued early payoff would reduce overall interest expense and avoid issuance costs for future borrowing, strengthen the city's debt position and free up future budgeted capital that could be redirected to a planned public works facility. To implement the plan, finance proposed an emergency supplemental ordinance that transfers funds among several accounts and increases project appropriations. Major supplemental items presented included:
• A transfer of approximately $677,000 from capital improvement to the Police/Fire/Street (Safe & Stable) fund to pay the bond anticipation note balance for fire apparatus; • Transfers of roughly $106,550 each to the job creation fund and the facilities improvement reserve (25% of unanticipated 2025 revenue as calculated by staff); • A capital transfer to general obligation debt service tied to the Stone Corey sale proceeds (about $1.26 million booked into capital and then moved to debt service); • Multiple smaller increases (CivicPlus ADA website upgrade, magistrate furniture, police training targets, federal grant tracking for Robinette Park splash pad and other project adjustments).
Council members expressed typical budget caution. One councilor noted that while some items appeared straightforward, several members wanted to be briefed and have documentation before voting on an emergency ordinance the same night. The manager asked for council input before the ordinance was moved to the evening agenda.
