Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Projects topic
No spam. Unsubscribe anytime.
Sheldon council authorizes up to $5.1 million bond package for street and stormwater work, adds community projects
Summary
City staff proposed using available TIF funds and bonding to pay for reconstruction and stormwater projects and to fund community amenities; the council approved authorization of approximately $5.1 million in bonds and amended the package to include high‑school parking participation, court resurfacing and a pavilion storage building.
The Sheldon City Council authorized staff to move forward with a bonding package of roughly $5.1 million to fund street reconstruction and stormwater projects and directed staff to include several community projects in the bond scope.
Staff (S6) told the council the city has about $7.9 million in available TIF (tax increment financing) expenditure authority for FY2027, of which roughly $4.3 million is already committed, leaving approximately $3.6 million available for new commitments. Staff recommended starting design this fall for the 2nd Avenue reconstruction (a 2028 project) and relocating the North 5th lift station—flood‑prone infrastructure—using 30% TIF with the remainder from wastewater reserves. Staff also proposed reducing callable debt by paying $1,000,000 and an additional $610,000 on a 2017B note, which would leave roughly $1.58 million in balance after those actions.
To assemble the project package staff recommended issuing bonds this fall or winter and using TIF cash to pay the initial debt service. The recommended package (PAPE phase 1) was estimated at about $4.0 million for core projects with additional projects bringing the target bond amount to approximately $5.1 million. Council discussed timing (design this fall, bid in January–February, construct next summer) and the need to decide by September to ensure inclusion in the bond.
A motion to proceed with a $5.1 million bond authorization passed by roll call. Councilors then debated additional community priorities—parking participation for the high school, resurfacing of basketball/pickleball courts, construction of a pavilion storage building and improving Highway 18 frontage roads—and amended the authorization to earmark funds for those items. A subsequent roll call approved the amended package. Staff said adding the items increases the bond amount and that the city would plan for a larger initial debt payment in the first year of the bond to manage annual debt service.
Staff also reported other near‑term construction actions: preconstruction meetings were held for Highway 18 drainage work (planned start Aug. 3) and the Wyman/16th drainage project (planned start Aug. 10); Highway 18 work could require lane reductions or a multi‑week detour, staff said.
What happens next: staff will prepare bond paperwork and refine cost estimates for the included projects, present final numbers to council by September, and proceed with design and bid schedules if financing parameters are approved.
