Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
City staff outline $3.1M temporary note plan for capital projects; Ben of Baker Tilly previews sale process
Summary
Financial advisers from Baker Tilly told the council the city plans to issue about $3.1 million in two-year temporary notes to fund several projects, with a projected final long-term bond need of just under $1 million after reimbursements; a May sale date and current two-year note rates near 4% were discussed.
Baldwin City’s finance briefing described a proposed temporary note issuance of about $3.1 million to cover capital projects with anticipated reimbursements reducing the eventual long-term bond amount to roughly $940,000. Ben from Baker Tilly walked the council through the project list and the mechanics of issuing two-year, callable temporary notes to bridge construction and allow time for state reimbursements.
Ben told the council the temporary notes would likely be issued with a two-year term and be callable; the city expects a roughly 12-week process from kickoff to closing and tentatively targeted a May 5 sale date. He also said market conditions at the time of the meeting put two-year temporary notes near 4 percent and longer-term bond yields around 3.6 percent, but that final rates depend on credit rating and bidder competition. “The 2 year temporary notes right now is around 4%,” Ben said during the discussion.
Ben further explained that the plan should not increase taxes — the presentation forecasted the bond program would be layered as older bonds fall off and highlighted the potential to use carry-forward cash instead of bonding specific small overages. Council asked follow-up questions about interest and amortization; Ben recommended staff and the finance committee continue to refine the plan before any required sale resolution or bond approval.
