Council authorizes note issuance to fund land purchases; finance plan calls for 5‑year direct placement

At the Dec. 8 meeting the council considered Ordinance 54‑25 to authorize the issuance and sale of notes in a not‑to‑exceed principal amount of $23,000,000 to pay costs associated with acquiring certain real property for municipal purposes. Finance staff described a recommended structure that would be sold directly to a bank, with a 5‑year term, interest paid semiannually, and optional prepayment beginning after year two.

CFO Matt Rubino said the expected borrowing amount would be approximately $16,900,000 and that staff planned a direct placement with Huntington Bank; he noted a preliminary term sheet locked an interest rate below 4.2% at the time of presentation and reported the city would contribute about 25% of the acquisition costs from general fund resources (approximately $5,400,000). Rubino outlined that interest‑only payments were expected in the first two years, with principal repayable thereafter or convertible to long‑term debt. Council moved to dispense with the second reading on the note ordinance and voted to proceed; staff said the note ordinance, if adopted, would be effective Jan. 7 with award and closing planned shortly thereafter.