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City outlines $39.5M bond plan for Scott Park and pool; median homestead impact estimated at about $149
Summary
Municipal adviser Jeff Peters and bond counsel told the Park Board that roughly $39.5 million in bonds could be issued to cover the balance of an estimated $50M project, producing a debt-service impact "just under 15¢" on the tax rate, about $149 for the median homestead as presented.
Jeff Peters, municipal adviser with Peters Franklin, presented the financing plan for the Scott Park and aquatic projects and summarized proposed funding sources: about $5,000,000 from the city's economic development income tax, redevelopment commission contributions for engineering and related costs, and approximately $39,500,000 to be raised by bond issuance to fill the remainder.
Peters laid out cost estimates and the likely tax effect: "That leaves about $39,500,000 that you would need to issue in bonds...the impact for the debt service would be just under 15¢ on the tax rate. Currently, the entire city tax rate is about 93¢. But for the median homestead...that impact is about a $149." He also noted the board would return to the market in a few months and that final pricing would determine final debt-service amounts.
Max Adams, bond counsel with Barnes & Thornburg, walked the board through the declaratory resolution language and timeline, saying the resolution contemplates issuing bonds in an amount "not to exceed 39,500,000" and that local approvals and public hearings would occur between July and October with bond pricing targeted for November and closing in early December. The board voted to adopt the resolution at the meeting, advancing the bonding process toward public hearings.
