Council approves municipal bonds to finance police headquarters and 911 center, ordinance passed unanimously

The Fremont City Council approved Ordinance 57-42 on June 9 authorizing issuance of municipal improvement bonds not to exceed $14,500,000 to fund construction of a police headquarters and a Dodge County/Fremont 911 communications center. The final reading and approval were carried unanimously 8–0.

City Administrator Jody Sanders summarized the financing request and said the city plans to use portions of existing sales-tax revenues dedicated to public safety to repay the bonds. "We are pledging the use of already imposed sales tax dollars that were set aside for public safety purposes," Sanders said. Financing consultant Scott Keane of Piper Sandler said current market conditions might allow issuing closer to $13.6 million and estimated a true interest cost around 3.94% in today's market, producing annual debt-service payments a little over $1 million. "The public safety portion of your sales tax collections last year were just under $2.6 million," Keane said, noting collections materially exceed the expected annual debt service.

Keane said the ordinance contains covenants limiting maximum principal ($14.5 million), a not-to-exceed interest cost of 5%, and a final maturity no longer than 25 years; he expected to start the rating process with Standard & Poor's immediately after council action and to market the bonds in July with delivery in August under the proposed timeline.

Council members supported the financing as necessary to complete a long-delayed facility upgrade and moved to receive the required summary and proceed; the ordinance was read, rules were suspended, and the council approved final reading and adoption by unanimous vote. The city will proceed with rating and competitive sale steps under the timetable described by staff.