Fremont council approves up to $14.5 million in bonds for police headquarters and 911 center

The Fremont City Council voted 8–0 on June 9 to approve ordinance 5742 authorizing issuance of municipal improvement bonds in an aggregate principal amount not to exceed $14.5 million to fund construction of a police headquarters and a Fremont-Dodge County 911 dispatch center.

City Administrator Jody Sanders, substituting for the finance director, said the city plans to use dedicated sales-tax revenues previously set aside for public safety as the primary repayment source. "We are pledging the use of already imposed sales tax dollars that were set aside for public safety purposes," Sanders said.

Scott Keane of financial adviser Piper Sandler described the financing structure, including three covenants in the ordinance: a not-to-exceed principal of $14.5 million, a true-interest cost cap of 5 percent and a final maturity no longer than 25 years. Keane said current market conditions make an issue nearer $13.66 million likely, producing an estimated construction deposit of about $14 million and an expected interest rate near 3.94 percent. Under those assumptions, annual debt-service payments would be just over $1 million, while the public-safety portion of sales-tax collections totaled roughly $2.6 million last year.

Keane said the city would ask Standard & Poor’s for a rating, then seek competitive sale in mid-July and deliver proceeds in early August if the schedule holds. Council received the required summary and voted to suspend the three readings and adopt the ordinance on final reading.

Council members emphasized facility needs; Councilman Jensen said he was proud to support the measure after touring aging facilities. With the action the council authorized staff to proceed with rating and sale steps described by the finance team.