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Centerton staff outline tentative plan to issue up to $43.3 million in bonds tied to sales-tax pledge
Summary
Officials presented a preliminary bond timetable and financing scenario linked to the March 2024 sales-tax extension; staff said voters authorized about $43.3 million in projects and preliminary modeling shows roughly $41.3 million available for construction under current rate assumptions.
Centerton — City finance staff presented a bond-financing update on Sept. 10 that outlined a tentative schedule and preliminary borrowing scenario based on a sales-tax extension voters approved March 5, 2024.
Cheryl (presenter) showed historical sales and use tax receipts that are about 11% higher over the past 12 months and described a tentative calendar: documents to rating agencies and insurers were submitted, an offering is planned for Oct. 8 and closing is expected Nov. 14. The presentation said voters authorized roughly $43.3 million in projects — including a community center, street improvements, parks and a police facility — and preliminary modeling suggested about $41.3 million in potential construction funds under current market-rate assumptions.
Why it matters: The bond proceeds would finance major capital projects the city has prioritized, and the timing ties to market rate forecasts and the Federal Reserve’s actions. Presenters said the city is targeting a strong credit rating and will bring a bond ordinance and purchase agreement back to the council for adoption prior to closing.
Details: Staff noted the use of a mandatory redemption feature in previous issues that has allowed early payoff of existing bonds; they showed debt-service projections and said coverage assumptions were built with a 1.25 coverage ratio. The presenter said final sizing and allocations will be set in consultation with department heads and the mayor before the offering.
Next steps: The city will present updated rates and a pre-offering to the council and expects to return with a bond ordinance and purchase agreement for formal action after markets and ratings are finalized.
Ending note: No bond sale took place at the Sept. 10 meeting; the item was informational and scheduled for further council action in the coming weeks.
