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Council approves notice of intent for up to $4 million in capital improvement bonds
Summary
On council recommendation, staff published a notice of intent under Act 34 to consider up to $4 million in capital improvement bonds to fund Fremont Street reconstruction, DPW expansion and related infrastructure; council approved the resolution of intent, starting a 45-day referendum period.
The council approved resolution 26-12, authorizing publication of a notice of intent to issue capital improvement bonds not to exceed $4,000,000. Staff explained the pre-bid estimate for listed projects is approximately $3.19 million and recommended a $4 million not-to-exceed figure to provide flexibility when bids are returned. Municipal adviser Steven Hajduk described two sale methods: a competitive bid sale (lower interest rate but higher upfront costs) and a private placement (higher interest, lower upfront costs), and offered conservative interest-rate estimates for 10–20 year terms.
Hajduk said a competitive bid sale might yield estimated interest rates in the mid-to-high 3% to low 4% range, while a private placement could be roughly 4.4–4.9% depending on term and market conditions. Council voted to approve the notice of intent to begin the Act 34 process, triggering a 45-day referendum period during which electors may circulate a petition to require voter approval of the bonds.
