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Council calls public hearing on $3 million CIP bond to fund public works facility and 34th Street improvements
Summary
City staff presented bids for an 11,200 sq ft public works shop and discussed financing options including a proposed $3 million CIP general obligation bond and a $2 million state grant for 34th Street. Council voted to call a public hearing on the CIP bond resolution.
Slayton city staff reviewed bids for a new 11,200-square-foot public works facility and outlined financing options, prompting the City Council to call a public hearing on a capital improvement (CIP) bond resolution.
Staff member/Presenter (S3) said the city received eight bids for the public works shop; JCF Companies LLC submitted the low responsive bid at $1,037,008 for a bare-bones steel building. Staff explained financing choices: a CIP general obligation bond (recommended because of lower rates) that triggers a public hearing and a 30-day petition window after a 10-day posted notice, and alternative lease-revenue bonds that typically carry higher interest rates.
The staff presentation also reviewed the Bicentennial project and a $2,000,000 state grant for 34th Street that requires no local match. Engineer estimates presented for 34th Street were roughly $1.9 million for a 10-ton bituminous option and $2.6 million for a two-lane concrete option; staff recommended considering the fuller-build option to maximize longevity, noting the state grant covers a substantial portion.
Staff outlined a $3,000,000 bond scenario that would cover multiple projects: $1.2 million for the public works facility, $750,000 for parks/public-shelter work, and $2.0 million in grant-backed road work. Under the 20-year debt-service example, staff estimated a levy impact beginning in 2027 equivalent to several percentage points of the levy (staff provided illustrative calculations and cautioned the estimate is preliminary). Council discussed bundling projects in one bond issuance to reduce issuance costs and directed staff to proceed with calling a public hearing. The council scheduled the public hearing for Thursday, August 6 at 6 p.m. and carried the motion to proceed.
What comes next: the council will publish the required notice and hold the CIP bond public hearing; a 30-day petition window would follow the hearing and could prompt a referendum if petitioned by the required number of voters.
